NY coffee neutral in $2.5545-$2.6475 range

SINGAPORE: New York coffee has turned neutral after falling into a range of $2.5545-$2.6475, and an escape will point a direction for its next move.

The 2.6475 level serves as the neckline resistance of a possible double-bottom pattern, and it was tested during the previous trading session.

However, coffee failed to break above this resistance, consequently, the pattern has not been confirmed.

The fall from the hourly chart at $2.66, the wave (c) peak, adopted a corrective wave mode, signaling coffee may retest the resistance.

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Copyright Reuters, 2011