The 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.
I am bullish Coffee since a series of bullish momentum divergences started to develop in February, March and April. As with other commodities, I am convinced that the early 2016 lows were important cyclical lows. I am therefore bullish Coffee long-term. The weakening US Dollar should further support the entire commodities complex.
The latest correction brought...
If ONLY you already have this stock in your portfolio,
AUG16 19 call is only $.65 which is 3.4% (UR) and 4.1% (AR) which is good downside protection.
Next ER is 90 from now.
Plan B: Feb17 17.00 is only $3.20 and you can close it at $2 for more than 5% ROI. (if only you have this stock already in your portfolio.)
Risk: Enter at your own Risk. Investment...