Coffee-An Ongoing Trade....

Click on the chart to enlarge.

We monitor many markets everyday and coffee has been a good short setup in the last few weeks. As with any good swing trade, we firstly noticed a multi-month downtrend since February (not shown), and during this time, pauses in the trend where price moved sideways for several days.
This pattern played out during the first two weeks of June, when coffee bounced along the support line, drawn in red. When price breaks a support line, then the odds favour a continuation of the down trend and surely enough this is what happened. The down arrow indicates the entry day, followed by the smaller red line, showing the profit target being hit on day three. So far coffee continues to fall and we will stay in the trade for as long as possible, until the move is over.