David Burrows
iPATH DJ-UBS Coffee
JO-N
BUY
Dec 13, 2016
Looking at the longer-term chart of coffee, it made a turn higher in about March, and had a pretty good lift from $17 to about $26. It has now pulled back into support at about $21. In general, the commodities are improving. We are seen strength in a whole bunch of different groups. This looks okay here.
Huge leap are full all of a sudden. Has cleared a long range that it has been trading in. Did a little consolidation around $43 and then gapped higher recently and continues to trade near its highs. Use an entry point of about $45.
Soft commodities have taken a real hit. Chart shows a long downtrend from 2011, followed by a breakout in early 2014. All of the soft stuff went from about $38 down to the low $20’s, but coffee didn’t. Because of this, he would think it goes higher.
Some commodities are behaving quite well. Thinks that technically this coffee ETF looks quite attractive. Coffee prices had been quite weak for a couple of years, and have made a nice turn here.
Doesn’t have a real good opinion on where coffee is going from here. We are always going to be drinking coffee. Demand is strong. If the price of this keeps going down, there must be a decent supply of coffee out there.
Looking at the longer-term chart of coffee, it made a turn higher in about March, and had a pretty good lift from $17 to about $26. It has now pulled back into support at about $21. In general, the commodities are improving. We are seen strength in a whole bunch of different groups. This looks okay here.