SINGAPORE: New York July coffee may drop more to $1.2040 per lb, as it has broken a support at $1.2170.
The support was provided by the 50 percent projection level of an upward wave c from $1.1635. This wave looks like a part of a wedge that developed from the April 17 low of $1.1530. The pattern suggests a target around $1.1790 which is too far away to be realistic.
A more realistic target could be $1.2040, a break below which could open the way towards $1.1885. A break above $1.2170, now a resistance, could lead to a gain to $1.2295.
Note: Coffee report will be provided twice a week - Tuesday and Thursday.
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.
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