SINGAPORE: New York July coffee may retrace into a range of $0.9150-$0.9225 per lb, as suggested by its wave pattern and a projection analysis.
A wave C from $0.8845 may have completed, as it could be broken down into five smaller waves.
A projection analysis reveals that coffee has broken a support at $0.9340.
It may fall to the next support at $0.9225.
A rising trendline suggests a lower target at $0.9150.
Resistance is at $0.9410, a break above which could signal the extension of the wave C towards $0.9530.
On the daily chart, coffee failed to break a resistance at $0.9475, the 61.8pc projection level of a downward wave C from $1.1285, it may retrace towards the support at $0.9045.
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.
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