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JO, Coffee ETF Bullish Falling Wedge Breakout

Member @jameske inquired about JO (Coffee ETF) in the trading room today. It appears that JO could run up to the 23.30 area following today's breakout above this 60-minute falling wedge pattern, with positive divergences confirming the bullish nature of the wedge.

As the rally following today's breakout was quite impulsive, with JO posting a gain of 3.62% on the day, this is only an unofficial trade idea at this time as I'd prefer to see a more objective entry, such as a pullback to the 21.10 area or possibly a backtest of the wedge, before adding JO as an official trade idea. Daily & 60-minute charts below:

 

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Aug 22, 2016 5:14pm|Categories: Gold & Commodities|Tags: , |1 Comment

One Comment

  1. rsotc October 26, 2016 8:43 pm at 8:43 pm

    I’m working on updating all of the Trade Ideas categories tonight, starting with those trades that were still listed as Long or Short Trade Setups but had not yet triggered a predetermined entry criterion or a specific entry level was not yet listed & still TBD.

    While JO did provide an objective long entry with the pullback to the 21.10 area that I was looking for when the setup was posted on Aug 22nd, this Coffee ETF had fallen off my radar at that time & I did not add it as an official trade. Although JO went on to play out as expected, with a move up to the 23.30 level (and beyond), now up over 15% since then, it will not be moved to the Completed Trades category nor counted as a successful trade as it was never an official Active Trade. As such, this post & any associated comments such as this one will be reassigned as “uncategorized”, meaning that as with all posts ever published on this site since inception, it will be archived indefinitely for future reference & can be accessed by selecting the symbol ticker tag “JO” from the ‘Select Tag’ drop-down menu located on the sidebar of the home page.

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