"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 12 mins Four Tips From The World’s Top Investors
  • 1 day The Dark Side Of Trump's Tax Bonanza: $1 Trillion In Debt
  • 2 days How Goldman Made $200M In A Day
  • 2 days Why Trading On Trump's North Korea Misstep Won’t Work
  • 2 days Samsung Loses $539 Million In Battle Against Apple
  • 2 days Is There Upside Potential For Gold Juniors?
  • 2 days World's Top Diamond Jeweler Joins De Beers' Tracking Initiative
  • 2 days Cryptocurrencies Bounce Back But Struggle With Key Resistance Levels
  • 3 days Millennials Are Waiting For A $30T Inheritance That Might Not Come
  • 3 days Is This the Tipping Point for American Credit Card Debt?
  • 3 days Tech Icon Predicts A Big Future For Ethereum
  • 3 days Apple Doubles Down On Data Privacy
  • 3 days Where To Look As The Treasury Bond Bull Run Loses Steam
  • 3 days The Tech Giants Poised For A Breakout
  • 3 days The U.S. Dollar Is Set To Continue Its Rally
  • 3 days Bitcoin Plummets On Price Manipulation Investigation
  • 4 days The Multi-Billion-Dollar Business Of Influence Peddling
  • 4 days Goldman Backed ‘Stablecoin’ Hopes To Curb Crypto Volatility
  • 4 days Consumers Lost $1.6M To Crypto Fraud In Australia
  • 4 days Facebook May Soon Become A Paid Service
The Tech Giants Poised For A Breakout

The Tech Giants Poised For A Breakout

Bullish sentiment seems to have…

How Goldman Made $200M In A Day

How Goldman Made $200M In A Day

The thought of a stock…

A Short Term Look at Coffee Futures

The Coffee Futures have been in a short-term downtrend ever since the middle of last December, 2006, at 130.00. Prices have fallen nearly 20 points since, to a low of 111.10 on March 7, per the May Futures. How much lower will prices go? Will we reach the levels of last summer made at 93.50 in July? Well, if you take a look at Daily Chart #1, notice there is a Head & Shoulders Top marked with all five reversal points. The minimum downside objective is 108.3. With the low of the down-move so far being 111.10, the H&S Top objective is within striking distance of being met. Question: Will we meet the objective? Well, from a Classical Bar Charting point of view, I think, yes. But there could be another 'bump' along the way.

DAILY CHART #1

If you take a closer look at Chart #1, notice the small Falling Wedge that has formed over the last five days. This is a small pattern, but it has the potential to cause pain to the shorts and should be respected. Also, when looking at Chart #1, notice the divergence that price has developed with the Stochastics indicator. Is a rally imminent, then? Well, when you combine a 'short-term' momentum indicator with a chart pattern, there is always the possibility for a price movement in the desired direction; prices could creep up... or bounce up,... like they did back on the 21st of February. If you look at Chart #2, notice the Key Reversal and the 'three-day-mini' rally that started on the 21st; the whole 'bounce' was made on net short covering, or a decrease in Open Interest.

DAILY CHART #2

To have a 'healthy rally' of more than a few days, open interest needs to increase, steadily. Short covering will not sustain you; open interest will. Volume needs to confirm as well. So, with price so close to the theoretical objective and the last rally attempt on the 21st 'failing', what next? Well, the RSI is still signaling a confirmation w/the price trend and the short term trend is down. But, is there anything bullish on the horizon that has not been revealed? Could the price action on the May Futures chart be taking the form of a short term pullback to a larger intermediate price pattern? We will find out in my next report, when I cover the longer term range and find out if something is brewing.

 

Back to homepage

Leave a comment

Leave a comment