Arabica Coffee (KC) Weekly Hammer Nears Key 1.2 Level
Arabica Coffee (KC) rebounded a massive 3% plus yesterday, reversing most of the week’s earlier losses. Significantly, KC’s bounced off the 50% Fib retrace of the July rally, and has all but formed a higher August low (versus the July low), reinforcing the higher August high (versus the July high). Congratulations to readers who profited from the July 24th report highlighting the growing momentum behind KC’s major bottoming efforts. KC has now reclaimed the 38.2% Fib retrace of the July rally, and is poised to retest the psychologically key 1.20 whole figure level next week. Bulls looking a month or so out are undoubtedly eyeing 1.25 and the March high. The weekly, daily and 4hr RSI, Stochastics and MACD are bottomish, rallying or consolidating recent gains. I am flat after profitably closing longs yesterday and am looking to re-enter long in the green zone of the daily chart in the ~1.15-1.175 range, targeting the red zone (of the daily chart in the ~1.23-1.25 range) for Wednesday. The amber/yellow zone (in the ~1.11-1.135 range) is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter)…Click here to read today’s technical analysis of Raw Sugar, Natural Gas
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