Coffee has been ice cold since November of 2016, losing nearly a third of its value. Could this large 6-month decline turn into an opportunity? Below looks at Coffee ETF (NYSE:JO) over the past few years.
JO's 6-month decline had it testing triple support last week at (1). While at this potential support zone, JO attempted to create a bullish wick (reversal pattern) last week at (1). Bullish sentiment toward coffee has declined along with the price over the past 6 months, to the 29% level.
The trend in coffee remains down, as it has created a series of lower highs for years. One week's reversal action does not prove that a trend reversal is in play. The first step toward proving that a trend reversal is in play would be an overhead breakout at (2).
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