2nd chance to buy coffee

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.

https://lnkd.in/eSrBa-i

September 29, 2020
by Rob Zdravevski
rob@karriasset.com.au

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: