December 2012 Coffee Chart Gives a Signal To Short The Market.

The overall chart for December 2012 Coffee continues to look bearish. Since putting in a high at 285.65 cents per pound on May 1, 2011, this market has sold off dramatically, reaching a low of 153.70 on June 18, 2012. Since mid-June, this market has been in a corrective wave up. Now, with the market on Thursday, August 9, 2012 closing below support at 170, it appears that this market has resumed its main trend which is down. This market could possibly move all the way down to the support around the 130 area.

On Friday, June 10, 2012, I placed an open order to buy one December Coffee 140 put option at 120 points or $450 (1 point equls $3.75 in Coffee). My open order was filled on June 10 at 115 points or
$431.25.  My objective is to sell the option if the market moves down to the next major support level at 153.30 cents.