EMOTION is your enemy more than any market will ever be.
IS COFFEE UNDER 104.00 A GOOD THING? This week in my newsletter I suggested it could test 104.00. It not only tested it but is now below that level. About time. Why?
For the last three weeks it had been holding around 105.00 but couldnt get anything going in terms of a serious rally. And maybe theres a reason.
Since late 2019 coffee has seemed to like going under 104.00 before bottoming and getting serious about a rally. When it was trying to hold at 105.00 recently, the best it could do was an 8.00 point rally. But not so when it reaches down to 103.00 to 102.00.
In both Feb. and Mar. of this year it did just that and then both times it handed up rallies equally 22.00 and 26.00 points respectively. And then in Oct. 2019 it did even better. It sold off to 100.00 (ouch) but then had a rally of 46.00 points.
Im not saying we will get a repeat but I am saying it has been a pattern recently so if the selling continues down to 103.00 to 102.00 (as it appears to be) it may not be such a bad thing after all. And maybe that is where coffee will get serious about a bottom and hand us another good rally.
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