Friday, May 24, 2013
JO Coffee ETF Weekly Chart Falling Wedge Positive Divergence
Keystone continues to believe that coffee will be a fave commodity in the coming year or two, just as natty gas was identified over one year ago as the future darling. JO takes a tumble over the last two weeks spilling hot coffee over the long holders laps. The weekly chart, however, remains nicely positively diverged across all indicators, with a very attractive falling wedge. Price has already recovered off of oversold conditions and should create a firm base now. Keystone's 80/20 rule says 2's lead to 8's so the failure of 32 hints that 28 may be on tap, and, sure enough, that is the current print. This current level may represent the long term low for coffee. In these erratic and unstable markets nowadays, there are few attractive long term buy and holds but coffee is a candidate. Projection is sideways to sideways up for the foreseeable future. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.