/KC (coffee futures) second price target (bottom of the Ascending Broadening Wedge pattern) has just been hit for a quick, 1-day profit of 5% from yesterday’s objective short entry at the backtest of the middle trendline. The next sell signals/objective short entries to come on an impulsive break below the ABW pattern and/or 1.24ish support. Previous & updated 60-minute charts below.
Keep in mind that actively trading JO (coffee ETN) is more difficult than trading /KC due to the unusual trading hours of coffee futures, which JO tracks. Coffee futures trading hours are 4:15 am – 1:30 pm EST. As such, if you glance an intraday (e.g.- 5-minute, 15-minute, 60-minute, etc.) chart of JO, you’ll notice that prices flatten out after 1:30 pm each day. As JO is a relatively thinly traded (i.e.- low volume) ETN, exiting in the pre-market or after-hours trading sessions when a price target has been hit, such as the bottom of the ABW today, can be difficult as a well-placed limit order to close your position at where JO “should” be trading relatively to /KC may or may not be filled, depending if there is another willing buyer (i.e.- a standing buy or sell order at the same price for the same amount of shares or more) on the other side of your trade.