Don't Ignore This Chart!

JO Makes a Big Jump

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The Coffee ETF (JO) is one of leading commodity ETFs this week with an 8+ percent gain in just three days. The chart shows JO trending lower from the October 2014 peak until the February 2014 trough. JO then surged with a sharp three week advance that exceeded 20 and then pulled back to the 18 area in April-May. It looks like this pullback is ending as JO surged above the mid May high and broke above its 52-week EMA. 


The indicator window shows 26-week Aroon Up (green) and Aroon Down (red). Aroon Down crossed above Aroon Up in December and hit 100 that same month. A double top support break confirmed this bearish Aroon signal and JO began an extended downtrend. Aroon Up is signaling an end to this downtrend with a surge above Aroon Down in April and a subsequent surge to 100 this week. 

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--Arthur Hill CMT

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Announcement from the Author

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Arthur Hill
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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