Within the FDates Market Timing Membership forum, I posted an alert on March 1st to be alert for an important monthly bottom low in COFFEE for this month, along with 3 important dates to watch for this. One of those dates is now.
What makes ‘now’ special for COFFEE?
When you have certain TIME indication that you are looking for, and when that time arrives you find that the market has also formed its low at pre-calculated Fibonacci support, you have to at least be anticipating the possibility that prices are ready to start moving higher from that price point.
Taking the range from the major top May 3, 2011 down to the weekly low of August 8, 2011 and extending that range by 150% down from the last significant top of September 1, 2011 we arrive at today’s low in Coffee. Using Reverse-Adjusted data, it is 138% (Fibonacci).
There is no doubt in this analyst’s mind that Coffee is poised to form a MONTHLY swing bottom for March. It only comes down to when within this month that the final low will be made.
Of course this speculation has yet to be confirmed. A daily swing bottom would be confirmed for March 8th when prices move above 192 for the May contract. Confirming a weekly swing bottom would require prices to move above 202.50. And since this is all about a possible monthly swing bottom, that would require prices to move above 205.10 after March has closed, assuming that is still its high come April.
Being aware of the potential for a bottom is the first step to formulating a buy strategy.
