Written by: Trader 2/22/2009 8:03 PM
Coffee is getting down into a support area after spending a little bit of time in the overbought zone of the 14 period CCI. Usually, in situations like this you can buy the the first move into the oversold zone for at least a scalp. But, let's make sure that price wants to go up first so buy it above Thursday's high (110.60 for March and 113.35 for May). The chart with the possible support area is shown below. Momentum is starting to stall out as it approaches the level marked on the chart.
As far as stocks go, I think we need to wait until bear flags form now. We've had 4 days trading from high to low so now we just need to let things consolidate a bit now before another trade sets up. Chances are no stock trades are going to setup for a few days.
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