NY coffee may fall more to $1.5440

SINGAPORE: New York December coffee may fall more to $1.5440 per lb, as it has pierced below a support at $1.6265.

The support is at the 23.6 percent Fibonacci retracement of the uptrend from the March 1 low of $1.1940 to the Nov. 8 high of $1.76. The next support is at $1.5440.

The trend has reversed, as its three waves have completed. The completion has been indicated by a Fibonacci projection analysis which reveals the third wave, labelled C, is roughly equal to the first wave, labelled A.

Any bounce from current levels could be limited to $1.6775.