NY coffee to test resistance at $1.4370

SINGAPORE: New York Sept. coffee is expected to test a resistance at $1.4370 per lb, as it has found a support at $1.4040.

The support is provided by the 38.2 percent Fibonacci retracement on the uptrend from the March 1 low of $1.1715 to the July 15 high of $1.5480. It has caused a bounce, towards $1.4370, the 23.6 percent Fibonacci retracement on the downtrend from $1.5480 to the July 22 low of $1.4035.

A break above $1.4370 could confirm the extension of the bounce towards the 38.2 percent level at $1.4580. A break below $1.4035 could open the way towards $1.36, the 50 percent retracement on the uptrend.