The JO (Coffee ETF) long trade has now hit the first target (T1 at 27.72) for a 34% gain from the original entry price. JO was first added as both a shorter-term swing trade as well as a potential long-term trade back on Nov 6th at a price of 20.70. The final target on the short-term swing trade, which was based off of the 60 minute time frame charts, was hit for a 10.7% profit on Dec 9th. As stated then, the longer-term charts (daily & weekly) of both JO & spot coffee prices remained very constructive and as such, JO remained an Active Long-Term Trade. JO went on to break above the primary downtrend line/bullish falling wedge pattern & then came back in to backtest the pattern, which was highlighted as bullish price action & an objective time to add onto or initiate a new long position. Since that post less than one week ago, JO has exploded over 19% higher.
My expectation at this point would be a pullback and/or consolidation around the T1 level. Longer-term the charts remain constructive but JO is very overbought in the shorter-term time frame so booking partial or full profits here might not be a bad idea. Although not marked on the live chart, there is some resistance just above T1 around the 28.50 level which JO might reverse from as it has now overshot the T1 level (a common occurrence when the momentum on a stock or commodity is this strong). Click here to view the live chart daily of JO.