Another one to keep an eye on here, is Coffee Holdings (JVA), which is trying to clear its 50-day moving average. Volume is already higher than any down-day in the pattern over the prior 10 trading days, but the stock is still below the 50-dma at 18.61. If it clears the 50-day line then it would qualify as a bottom-fishing pocket pivot buy point, using a violation of the 50-dma as your selling guide.
Keep in mind that the market rally could give way at any time and it is still not clear that we are not in a mere bear market rally, thus pocket pivots could fail quickly - use proper risk management and downside stops. Also, pocket pivot type action here is constructive, but in the case of JVA, for example, could merely be an indication that the stock is forming the lows of a potential base and may require more time to set-up as the market progresses through a longer-term correction or even a bear market. We do like the way sellnig volume has dried up along the lows of the base in recent days.
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