After wobbling around all year with little winners and little losers and coming out flat, coffee futures in the past couple of month have found the swing rhythm that has characterized the commodity for the last few years.

I last posted on this when it finally had a single 100-plus percent move on margin. That post is here:

http://www.thegodoftrading.com/commodity-trading/kc-coffees-splendid-tumble/

That was a short and it was just as the reliable back-and-forth swings in the commodity were getting going. On June 23, Coffee was flat for the year on swing trades, and since june 23, the futures are now up nearly 300% (on its margin requirement) with both bulls and bears making money on the long and short swings.

It is currently overbought (up more than 100% on margin), just as in the last post it was oversold. So the time has come for bulls to lock in the profit with a tight stop on at least part of a position, or if one chooses one can wait, looking for more upside while being alert for the reversal to the downside.

(click on the chart to see a larger view)

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