SINGAPORE: New York September coffee may retest a resistance at $0.9640 per lb, a break above which could lead to a gain at $0.9790.
The resistance is identified as the 138.2pc projection level of a downward wave (c) from $1.1065.
The trend could be broken down into five waves.
The first wave labelled 1 and the fifth wave labelled 5 are roughly equal in length.
Such an equality, along with the bounce from the Aug. 13 low of $0.9315, suggests a reversal of the trend. Coffee is expected to rise towards the peak of wave 4 around $0.9885.
Support is at $0.94, a break below which could cause a fall to $0.9250.
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.
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