New York coffee may test support at $0.9920

• New York December coffee may test a support at $0.9920, as it failed a few times to break a resistance at $1.0220 per lb.

SINGAPORE: New York December coffee may test a support at $0.9920, as it failed a few times to break a resistance at $1.0220 per lb.

The resistance is identified as the 23.6% retracement of the uptrend from $0.9340 to $1.0495.

The correction triggered by this resistance may consist of three small waves.

The third wave labelled c is expected to travel to $0.9920.

A break above $1.0220 could lead to a gain to the range of $1.0325-$1.0495.

Note: Coffee report is published twice a week - Tuesday and Thursday.

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Wang Tao is a Reuters market analyst for commodities and energy technicals.

The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.