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Coffee Futures Break Out and Start To Rally

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Dec 19 Coffee Futures have broken out after consolidating in the same range on the daily charts since August 19th. Yesterday Prices closed above the channel where energy has been building and todays jump in price could confirm the rally has begun! Its interesting to note coffee has consolidated in that same range before making roughly a 20 cent move between late May and early July. Fundamentals strongly support as managed money is heavily net short with what could be a production deficit this year and the period of peak supply passing by. My analysis suggests we could see Dec 19 prices reach up to 11800 with plenty of short covering to fuel rising prices.At this point Id consider any pull backs a bullish opportunity.To learn more about using technical analysis to track opportunties or improve the timining of your entries and exits,you may download our free Technical Analysis Trading Guide here, Or click the link below. Futures Break Out Of Consolidation

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About the author

Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.

Sector Focus

Eric specializes in trend following strategies in metals, stock indices, energies, grains, softs.

Analysis Preference

Supply and demand data ultimately determines the long term trend direction. However, Eric uses basic chart patterns and price action to determine the impact news and information has upon the markets, which provides insight to the short term volatility and provides clarity on timing for entry and exit of a position.

Strengths and Trading Philosophy

There are opportunities in the futures markets each minute of every trading day. Spreads and option strategies are utilized by Eric as they present themselves. These opportunities may tend to take place after a long buildup or extreme events. When they reveal themselves, he believes in using discipline during the three phases of a complete trading strategy: Information, Action, and Exit. Diligence in acquiring, organizing and reviewing solid and reliable information, coupled with knowing the risk that is involved. Eric's strength is confidence in taking decisive action to use opportunities revealed by the information.

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