Could we be looking at yet another big commodity bull in coffee?London Robusta coffee has been in a solid uptrend since August that was not replicated in the New York Arabica contract... until late last month.
A big bullish bar off the double bottom punched through the downsloping resistance, launching quite a strong move upwards.
I was expecting a bit more retracement as a spot to possibly to some pyramiding, but yesterdays move off the trendline looks incredibly bullish. I just don't know whether its a good spot to add. But a strong bull doesn't hang about to offer traders a nice comfortable entry... case in point; corn.
If this takes off, so will volatility, so optioneers might want to get long some vega.
I am however, bracing myself for a price rise at my wife's favourite coffee shop. It might just cost me all my profits from trading this contract. :-o
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