NY March coffee may fall to $1.0340

SINGAPORE: New York March coffee may break a support at $1.0605 per lb and fall to $1.0340, as suggested by its wave pattern and a projection analysis.

The support is provided by the 61.8 percent projection level of a downward wave (c) from $1.1715. Generally, a 61.8 percent projection level is a strong support. However, in the case of coffee, the bounce triggered by $1.0605 was very weak. It has been reversed. The reversal signals an extension of the wave (c) towards $1.0340.

Resistance is at $1.0815, a break above which could lead to a gain into the range of $1.1025-$1.1290.