Golden Ratio: COFFEE ROBUSTA 2008-09-23

2008-09-23

COFFEE ROBUSTA 2008-09-23

DX8 LIFFE (ROBCOFFEE)
SELL 2100/2050/2000 STOP 2151 (adventurous) 2360 (safe). Target 1600 - 1400.

With commodities under pressure and dollar on the rise (yes it is, contrary to what every one might be calling - it would require a separate post on its own), coffee appears to be at an interesting point. It has been in a bull market late 2004 but the trend is looking tired. There is a big H&S on the weekly chart and it is also sitting on a long term trend line. Break below could take us all the way down to 1600-1400. I am planning to start with a small short position and add as the breakdown materializes below. At those points I can also bring down stops to reduce risk.

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