The JO (UBS Coffee Total Return Index ETF) Long Trade Setup (normal swing trade) and Long-Term Trade Idea has triggered an entry today on a break above this primary downtrend line. JO was a recently completed swing trade based off the 60 minute charts which hit its final target for a relatively quick 10.7% gain. Both JO (coffee ETF) and $COFFEE (coffee spot prices) were then added as Long-term Trade ideas (as well as a typical Long Setups) with an entry to be triggered on a break above the primary downtrend line for $COFFEE. As the $COFFEE chart only shows end-of-day (EOD) spot prices of coffee, one can use JO to get a potential heads-up on a breakout. One can also use coffee futures, which can be found under the Futures Charts link under “Tools of the Trade” on the homepage. Currently, coffee futures are trading up 4% on the day, which will print a pretty solid breakout above the downtrend line on the $COFFEE (EOD coffee spot price) chart on StockCharts.com, once updated tonight.
Long-term traders and investors might prefer to wait for a solid weekly close above the downtrend line while more active or typical swing traders might consider an entry on JO or coffee futures here on today’s breakout. As such, JO will be added as both an Active Trade- Long and a Long-term Trade Idea on the breakout today. Here’s a daily chart of JO along with a 15 minute chart of US coffee futures. A live link to the JO daily chart, with price targets, can be viewed by clicking here while a live link to the coffee spot prices (EOD) chart can be viewed here.