Coffee Review |
Coffee's overall trend, revealed by trends of price, leverage, and time, defined and are discussed in The Matrix for subscribers.
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Today's review discusses the Evolution of the Trade.
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Coffee's primary trend has been down 7 months. The gross profit has been -11%, because the invisible hand has been fighting direction nearly the entire time. Coffee's energy build entered bullish concentration as far back as June 2022 (see Coffee's DI). The bullish energy build remained until November 2022, AND briefly spiked in February 2023. The last energy spike accelerated the countertrend rally into air pocket (Coffee's Weekly Reversals). An air pocket is a profitable distance (gap) between green and red lines.
Coffee's DI
Coffee's Weekly Reversals
Today's air pocket won't last forever. There's a lot of overhead resistance (red lines) to chew through.
We could easily start a new Coffee Report to better understand the setup and trend. Will the rally be strong enough to break through the confluence of overhead resistance? Coffee is an interesting and challenging asset to trade. It requires understand of energy, participation, cycles, and seasonality. Please contact us if interested.
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