Everyday, EWI's chief commodity analyst and Futures Junctures Service editor Jeffery Kennedy wakes up, turns on his computer, and scours the entire commodity marketplace of for those price charts that have what I call the "Lady-Gaga-On-Stage" factor: in other words, you CANNOT take your eyes off them.
For Jeffrey, that "wow" factor can come in many forms: A compelling Elliott wave pattern, a major technical indicator flashing "red alert," and/or market sentiment measures that have reached historic extremes.
Once the Elliott wave and technical picture align, Jeffrey then presents his complete analysis of the market (or markets) in his
Daily Futures Junctures service.
Today, we're going over one of three commodities that recently grabbed Jeffrey's complete and undivided attention: Coffee.
In the latest,
November 28 Daily Futures Junctures, Jeffrey presents the following chart of coffee that is to an Elliottician what "Mother Monster" in a meat dress is to a Gaga groupie: Shocking to behold.
For those new to our pages, the Elliott pattern that has taken center stage in the above chart of coffee is a
Contracting Triangle. This is a sideways move comprised of 5 waves, A-B-C-D-E. They always occur in a position prior to the final actionary wave in the pattern of one larger degree, i.e. as wave four in an impulse, or wave B in an A-B-C correction.
When a Contracting Triangle ends, the resolution is usually sharp and swift. "Triangles appear to reflect a balance of forces," says Prechter and Frost's Elliott Wave Principle – Key to Market Behavior. "When a triangle occurs in the fourth wave position, wave five is sometimes swift and travels approximately the distance of the widest part of the triangle."
Now, according to Jeffrey's
November 28 Daily Futures Junctures coffee update, recent price action has provided a "good indication" that the contracting triangle has ended.
Meaning, the next move in coffee could be a REAL show-stopper.