SINGAPORE: New York September coffee may break a support at $1.1035 per lb and fall towards the next support at $1.0765.
These supports are identified as the 76.4% and the 61.8% projection levels of an upward wave C from $0.9625. This wave could be divided into five smaller waves. Such a structure signals the completion of the wave C.
A break above $1.1220 may lead to a gain limited to $1.1470.
On the daily chart, a retracement analysis on the downtrend from $1.3630 to $0.9005 reveals a strong resistance at $1.1320, the 50% level, which helped stop the rise. Chances are coffee may fall towards $1.0770, which is near $1.0765.
Note: Coffee report is published twice a week - Tuesday and Thursday.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of to retrieve the original reports.
** 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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