Coffee’s been on a holy tear and recently blew past a $185 target given here two weeks ago. If you’re looking for an exit spot, or perhaps an opportunity to do covered writes against a long-term position, you should use the 218.20 target shown. Meanwhile, traders should approach this vehicle with an aggressively bullish bias, implying that a pullback to the 194.63 midpoint pivot be viewed as a bottom-fishing opportunity. The target and midpoint should generate a discernible ‘Hidden Pivot effect’ by way of support or resistance, and the effect should be fairly precise. But I would recommend that trade entries be effected via the ‘camouflage’ technique, since this vehicle has been so wild. _______ UPDATE (March 17, 1:38 a.m. EDT): The midpoint pivot associated with the 218.20 target lies at 194.63, so keep that in mind as placed to attempt tightly controlled bottom-fishing. ‘Camouflage’ on the 3-minute chart or less is the entry tactic I recommend. _______ UPDATE (March 20): The selloff begun from last Wednesday’s peak is appropriately vicious, given the steepness of May Coffee’s ascent. There is more weakness to come, given that the target shown as been exceeded and that the most recent leg down was bearishly impulsive on the hourly chart. ______ UPDATE (March 26, 1:01 a.m. EDT): From a potential washout low at 166.00, the futures have finally gone bullishly impulsive on the hourly chart. The trade is from the long side here, using Monday’s low as a point ‘A’.
