SINGAPORE: New York Sept. coffee may break a support at $1.4710 per lb, and fall more to the next support at $1.4470, as suggested by its wave pattern and a Fibonacci projection analysis.
For a chart: http://tmsnrt.rs/29HrC7g
A three-wave cycle from the June 27 low of $1.3460 has completed, as indicated by the deep fall from the July 15 high of $1.5480. A Fibonacci retracement analysis on the cycle reveals two supports, provided by the 38.2 percent and the 50 percent retracements respectively.
The strong bearish momentum is likely to drive the price further down to $1.4470, despite that the support at $1.4710 is strengthened by a similar trendline support. It is not very clear if a bounce could occur around $1.4710, but such a bounce may be limited to $1.5005, the 23.6 percent level.
Comments
Comments are closed for this article.