JJS – Looking for a bounce


Click here to view the chart.
The “Softs” (such as coffee, cotton, sugar, orange juice etc.) have been beaten down significantly over the past 18 months or so.  Expecting a move up in this sector in the near to medium term.  Looking to play this via JJS (iPath DJ-UBS Softs TR Sub-Idx ETN), which  invests in commodity futures contracts of coffee, cotton and sugar.
On the weekly chart …
– Price approaching demand zones.
– Possible bullish divergence developing.
– Price at 78.6% Fib retracement of last significant move up (AB).

Might wait till price is around 50 or buy a smaller position now, adding more if price goes into the demand zones.

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This entry was posted in Divergence, Fibonacci, JJS, Misc. Setups, Softs, Support (Demand) - Resistance (Supply). Bookmark the permalink.

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