SINGAPORE: New York May coffee may reverse its downtrend in a support zone of $1.1530-$1.1675 per lb, as the trend looks very exhausted.
The exhaustion is indicated by the bullish divergence on the hourly MACD. A retracement analysis on the downtrend from $1.3575 to $1.1530 reveals a support at $1.1675, the 7 percent level, around which coffee is trying to stabilise. The low at $1.1530 works as a strong support as well.
A break above $1.1830 could confirm the reversal of the downtrend and a bullish target at $1.2015 will be established.
Note: Coffee report will be provided twice a week - Tuesday and Thursday.
No information in this analysis should be considered as being business, financial or legal advice.
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