Hi Traders! Coffee forecast follow up and update is here. On June 24th I shared this Coffee Forecast Update post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
Now let’s summarize the idea first:
Coffee H4(4 Hours) Chart
Based on this analysis I mentioned that until the strong support zone holds my view remains bullish here and break above the downtrend line would validate this bullish view. The price is moving perfectly as I expected, the price respected the strong support zone and then it moved higher and broke above the downtrend line thus validating this bullish view.
Coffee H1(1 Hour) Chart
While looking at the H1 chart we could see that the H4 downtrend line breakout happened in the form of a bullish trend pattern which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern we may expect correction and then further continuation higher. Currently, it looks like the correction is happening, once the correction completes itself we may then expect further continuation higher.
Coffee H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my view was bullish here and I was expecting corrections and further continuation higher. The price moved perfectly as per my plan on the H1 chart, the cirrection that I was looking for happened and then the price moved higher exactly as I expected, delivering a fantastic move to the upside.
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions”.
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If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
