2nd chance to buy coffee
September 29, 2020 Leave a comment
Coffee didn’t quite trade down to the $1.06 buy price I was looking for, as per my July 31, 2020 note. (see link below)
Instead, it carried on higher from the $1.15 level mentioned, towards a $1.34 high.
The chart below shows a trend line it hugged and held, until it didn’t.
A trader protecting their position may have placed a stop loss order about 1 cent below that trend line.
The long term supply disruption theme remains intact, however the short term gyrations have seen it trade back to its 200 day moving average albeit its not yet oversold.
I may have a second chance to buy coffee around the $1.05 level, but I’ll watch it closely for the velocity of the decline and whether it holds recent lows.
September 29, 2020
by Rob Zdravevski
rob@karriasset.com.au
