NY coffee may break support at 1.4470

SINGAPORE: New York Sept. coffee may test a support at 1.4470 per lb, a break below which could cause a loss to the next support at $1.4230.

The bounce from the July 18 low of $1.4485 could have completed and the downtrend from the July 15 high of $1.5480 resumed. The support at $1.4470, the 50 percent Fibonacci retracement on the uptrend from the June 27 low of $1.3460 to $1.5480 may not hold, as it is the second attempt of coffee to test this level.

Resistance is at $1.4710, the 38.2 percent level, a break above which may lead to a gain limited to $1.4850, a resistance provided by the trendline rising from $1.3460.