What should worry you about the July Coffee is that it closed at a new weekly low. If you are selling breakdowns, be ready to see this rally in your face. You can protect yourself by having protective buy stops in above the market. The best way to enter short is to wait for the rally up to the downtrend line and then sell the reversal.
I’d definitely wait for a rally to get short. With the increased correlation between commodities and stocks, the benefits from diversification aren’t what it used to be.
Looks like your anticipated rally started today!
who knows? Could be random noise…
So what do you use to filter out noise vs. significant price action?
Volume, for one. Then the price action the next day. Is there follow
through…