Stocks drop and rising interest rates Commodities set to rise!As the stocks correct by 10% or more, I believe that the coming commodity bull market is set to come very early. The second factor for a commodity bull market is the rising interest rates. This is very bad for stocks, growth stocks especially as they cannot borrow more money to grow their company. The third and a bit smaller factor is that the dxy is rising and if the dollar rises, the stocks fall and then commodities rise. This is a hot new market to look for here. Warning2 I am not a financial adviser and take this with a grain of salt. Happy trading!
Coffee_analysis
COFFEE REVERSE H&S PATTERN| TRADING PLAN|
COFFEE has reached a confluence of strong support lines, so I am looking for a long opportunity.
Now, we can see that there has been a breakout of the downwards channel resistance upwards
This breakout was also a breakout of the neckline of the reverse head and shoulders pattern.
Now, we are waiting for the 4h candle to close ABOVE the neckline and we are going long from the pullback.
Sl below the right shoulder high. Two take level are the two resistance levels that you can see on the chart.
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COFFEE - Possible "coffee break" aheadCoffee is back around the price of the beginning of the month.
Since OCT 2 we have a shy uptrend forming for coffee’s standards, in the 4h time frame (TF).
The price went up from its lowest of the current month and $104.90 to $113.35 (+8.04%) on OCT 12 and $111.70 (+6.45%) today so far.
The trend on the Higher TFs is still bearish and technically this is where are now.
We have some indications suggesting that we might be in front of a total reversal for the price of Coffee.
There are:
1) Higher lows since OCT 2
2) at the 4h TF since OCT 9 from the 10 bars 8 of them are above the 50MA
3) we had two major tests (and rejections) for price to break above two week resistance
4) we expect the price to reach at some point soon the monthly Fib 0.382 level
Against the above are the latest data from the COT report of OCT 6 where hedge funds closed 3.207 positions and opened 4.219 bringing the Net Long positions to 47.505 from 54.931 the previous week. Of course we still don’t know what their positions are for the current week.
So what we make out of all this.
To put it in simple terms with what I know so far the longer the price remains above the 50MA the more the chances of it breaking the $112 and move towards the Fib 0.382. The “Decision lvl” is where the two weeks resistance meets the blue trendline. Break it and we buy.
If on the other hand price breaks below the green trend line and the 20MA then we might be looking for more to the down.
Good luck traders
Note: I'm no trading expert nor have the ambition to become one! The above is just an idea that I share with the intention of attracting comments and perhaps become a better trader.
The decline is not done yet. ExplainedCoffee reached our target at 120. However, there is still no signal the decline is done and we want to follow the trend. The support is broken and it makes me believe there is a big chance we can see a retest of important support/resistance near 104. So, if you still hold your shorts, consider adding trailing stops and let the good time roll.
Trend change is coming. Potential entries and targetsThe COT report is bearish, the seasonal tendency is to the downside. We have a divergence in the 4h chart. So, where do we sell? I think breaking below Thursday's low or formation of lower high would be good entries. 120 has been an important level for Coffee. It has to be tested again and it is our swing target.
US Coffee futures ( KC1!) - stay short for C wave US Coffee futures ( KC1!) has completed ABC zigzag up side where C wave was extended impulse.
It dropped in wave A in 15 min time frame, so get in to sell trade in B wave near 124.25, with stops above invalidation level above 127.50 for target of C wave down up to 116.50, which is the 4th wave zone of internal wave of C previous wave of Up cycle.
Coffee arabica outlookfundamentals are important - Brazil gained +4% in new coffee producing land last year - they have 40% of global output => +1,6% world coffee production only from Brazil and good weather conditions (until now).
their currency is to watch too! As long as Bolsonaro is president its really difficult, because they can easily convert rain forest to agricultural lands, witch is bad for coffee prices (and the world too).
in the long term coffee needs to go to 1.50 - 1.70
September/October its more interesting - El Niño
Coffee (KC) analysisAfter the strong bullish speculation on sugar finally ended, with the price is returning to more realistic values, my attention shifted to coffee.
Coffee, which was also heavily speculated upwards, reaching an absurd price of $ 140, has returned to the $ 100 area and then rebounded. At the end of the bounce, as you can see from the chart below, a distribution phase has begun, what in the candlestick analysis is called "checkmate."
Coffee, if there is no particularly positive news and data, will fall again in the coming weeks. Both because of the coronavirus effect, and because Brazilian production has grown a lot (also helped by the favourable climate), which will bring the price down.
Also (confidential news), a well-known Italian coffee company is still waiting to fix the price of the next deliveries, as it is sure that the contango will drop, as well as the prices.
Next short targets: $ 106.50/108.00 - $ 101.00 - $ 97.50/99.00 - $ 94.00.
Coffee: Supply and DemandIf you like this idea, don't forget to support it clicking the Like Button!
Coffee futures continued to drop, now trading on a strong support area ($115). The price has recently soared ($142) due to Brazil's supply difficulties. On the other hand, I'm expecting Coffe demand to be stable or even grow, supporting the rise of Coffee prices.
Disclosure: My ideas contain statements and projections based on assumptions on capital markets, and therefore inherently subject to numerous risks and uncertainties.
Before buying or selling any stock you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal.
I am not a financial advisor.
KC, Coffee C Futures - Symmetrical Triangle on Coffee FuturesICEUS:KC1!
Commodities are very volatile assets that can generate excellent profits if traded with discipline and awareness of their volatility.
In this case we are monitoring the compression of the price that is represented by the symmetrical triangle pattern, often symptom of potential breakout with subsequent trend.
We have set the alerts and we are waiting.
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