Trade of the Week: long Robusta coffee
Robusta coffee looks to have ended its corrective move lower and we expect this year’s uptrend to continue. We would like to go long, ideally at $2,425, with a stop-loss at $2,365 and an upside target of around $2,725.
(Video Transcript)
Long Dax40 went well
Hello and welcome to this week's Trade of the Week on Tuesday 29 August 2023. Last week we went long the DAX40 index, and that trade worked out really well at the beginning of the week, gaining us over 200 points.
But then on Thursday we had a very sharp reversal lower ahead of Jackson Hole. Having said that, we didn't get stopped out because we had to stop below the last reaction low on the 200-day simple moving average here in red and we are back in positive territory by about 240 points or so at the moment.
So this trade remains intact. What I would suggest we do, though, is that we raise our stop loss level to the last reaction, though, that is to say at 15,545 on the Dax index.
Going long Robusta looking strong
Moving on to this week's Trade of the Week - what I would like to do is to go long Robusta coffee . As you can see here, the coffee price has risen for all of this year to $2,803 per tonne and then since June of this year we've had this corrective move lower in three phases.
But it looks to me as if this correction to the downside is now over and that we are reversing to the upside again and could be heading all the way back up again towards the June highs. So for that reason I'd like to go long Robusta coffee.
So this week's Trade of the Week is to go long Robusta coffee, ideally at $2,425 per tonne with an upside target at $2,725 per tonne and a stop loss just below the last reaction low at $2,365 per tonne.
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