NY coffee faces resistance at $1.4775

SINGAPORE: New York Dec. coffee faces a resistance at $1.4775 per lb, a break above which could lead to a gain to the next resistance at $1.5010.

These resistances are identified respectively as the 50 percent and the 61.8 percent Fibonacci retracements on the downtrend from the July 15 high of $1.5765 to the Aug. 17 low of $1.3785. A rise to $1.4810 could confirm both the break above $1.4775 and the target at $1.5010.

It is not very clear if a correction could occur around $1.4775, but such a correction could be limited to a support at $1.4540.