Coffee King's Cross counter-trend buy signal in a range bound market

June 23, 2015 09:10 AM

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A look at this coffee daily chart is giving another counter-trend buy signal in a choppy market.

Based on my research, coffee has not been able to establish a longer-term trend up or down on the daily chart since it came out of a super trend to the down side back in March. Although the King's Cross buy and sell signals have had some success (see chart below) Today's King's Cross buy signal will probably fail before coffee gets to 143.00 vs. July contract and may not even take out 138.00. I think this will soon be another selling opportunity. I will be looking for a formation that suggests a topping. The weekly chart gave a sell signal last week and my research shows coffee on a longer term down trend I show support at 118.20

About the Author

Larry Baer is a senior broker with Zaner Group. He has been in the futures industry for 30 years and his prior experience includes a membership at the Chicago Board of Trade.  During his 10 years on the trading floor, he traded and managed a futures and options operation, which serviced both retail and institutional clients.  He is also the author of “The Trader's Tool Box.”  He may be reached at lbaer@zaner.com and  312.277.0112.