KCU10 – September Coffee (Last:177.10)

The futures are being pushed by two strong uptrends that project to 191.05; or if any higher, to 197.00. The respective midpoints of these Hidden Pivots lie at 178.58 and 176.80, so it is in the range between them (see chart)  that you should look to bottom-fish via “camouflage”.  In practice, this will likely entail jumping on the first northbound abc pattern that turns up on the 3- or 5-minute bar chart.  The lines define a logical range for a swing low to occur. ______ UPDATE (August 19, 9:33 p.m. EDT):  The futures triggered a camouflage entry at 176.33, followed by a profitable exit on half the position at 177.36, the Hidden Pivot midpoint of the pattern shown. For tracking purposes, I’ll assume we are long one contract whose cost basis has been reduced by the amount of our paper gain to 175.03. Use a break-even fixed stop for now, but we’ll give it plenty of room to run before we switch to a 0.30-point trailing stop at 190.65.