TradingView
peterbokma
Nov 26, 2021 3:43 AM

COFFEE - SELL SELL Short

Coffee C FuturesICEUS

Description

the medium-term picture of coffee is to correct over time. we should be seeing 200.00 levels again.
The current price $ 245 is above the BB and the RSI is way higher than the past corrections observed.

Strategy is to sell in small increments, and stop-loss (perhaps not needed due to the high level of RSI).

manage the position carefully, and take back positions during decline at 227.00 and 217.00 and re-sell when moving higher afterwards.
Comments
Divergencify
looking like RSI divergence works, regards!
Stribogius
I believe RSI is a very bad indicator for a bullish market like this one because in order to be reliable the price needs to oscilate.
RSI in my chart is a little lower than yours and it already started falling on Friday very much like on the 17th November from which it recovered quite fast. I am keeping my long position until my trendline support is breached.
I mean you may be right and the bears might take over but I'll need a little more confirmation before I start selling - it's still bullish which makes all the selling attempts very risky even with stop loss.
meringuebobbi
The last opinion doesn't seem to fit well.
I'll keep in mind what will happen this time.
More