Coffee may be too hot, or just brewing nicely
The price of coffee (COFFEENYCont, COFFEENYSEP16) is trending higher.
On Friday we experienced a spike higher that found itself suddenly reversed. However, the price did not hit and reverse off any key pivots on Friday or Thursday last week.
Also, time cycles have been interpreted as incomplete. We could have quite a distance to go yet, and it may be time for another balance trade to try to juice performance on the core position.
Since we are not expecting a larger peak in the price of coffee until around August 18 it is possible that we are in the midst of a third wave higher.
A third wave is the longest and most powerful wave of a five wave impulsive sequence and we would very much like to make the most of it.
This setup could be viewed as a stand alone short term setup or as a balance to the core position initiated on June 15. Buy at market but above 145c/lb, the stop is a daily close below 145c/lb and the targets are 156c/lb and 163c/lb.
Entry: Buy at market above 145c/lb.
Stop: Daily close below 145c/lb.
Target: 156c/lb and 163/lb.
Time horizon: One week