SINGAPORE: New York December coffee may end its correction above a support at $1.0115 per lb, and retest a resistance at $1.0360.
The resistance is identified as the 50% retracement of the downtrend from $1.1375 to $0.9340. Except for a sudden fall from the Sept. 11 high of $1.0470, there has not been any reversal signal. The fall does not look deep enough to confirm a reversal of the uptrend from $0.9340.
A break above $1.0360 could lead to a gain into the range of $1.06-$1.0895.
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. **