NY coffee to temporarily top at $2.8080/lb
SINGAPORE: New York coffee may temporarily end the current rally around $2.8080 per lb, as indicated by a Fibonacci retracement analysis.
The resistance is the 61.8 percent Fibonacci retracement on the fall from $3.0890 to $2.3530, forming a strong barrier to the linear rise over the past few weeks.
Coffee may either hover around a resistance or retrace to $2.70.
A brief piercing above $2.8080 will not be considered as a valid break, and only after coffee rises to $2.83, a bullish target at $2.9155, the 76.4 percent Fibonacci retracement, could be established.
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.
Copyright Reuters, 2011
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