What Was That Mysterious Chart?

Sometimes we allow our preconceived notions get in the way of objective analysis. I see this time and time again. A trader might be bearish on the stock market so that prevents him from buying a non-correlated stock in a beautiful uptrend. I'm guilty of this myself. We're human right? Sometimes, when I rip through a series of charts, I don't even look at the symbols. I just keep going until I find one that I love (or hate), and then see what it is. The best part about this process is when you like a particular chart, and look up at the symbol only to realize that you already own it. That's when you smile, and move on.

So I've been posting charts on occasion without any labels or detailed time frames. Just a bar chart and our imagination. This week's mystery chart sparked some nice conversations over the social interwebs. As usual, there were some great ideas and risk management procedures shared by readers and twitter followers.

The mysterious bar chart this week was Coffee Futures using 30-minute time frames. Here is the actual chart with dates and prices:

I agree with a lot of the feedback that this could be an excellent long above this overhead resistance. Momentum has turned up while prices have consolidated the last couple of weeks. With the downtrend line now broken, we're just waiting for the overhead supply to dry up. And I have a feeling this should come soon. We'll see....A breakdown below this consolidation could lead to another big leg lower. So we're waiting for a breakout.

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Tags: $KC_F $JO