NY coffee may fall to $1.0835

SINGAPORE: New York December coffee may fall to $1.0835 per lb as it has failed to break a resistance at $1.1360.

The failure marks the end of a five-wave cycle from $0.9510. The bearish divergence on the hourly RSI confirms the completion.

Even though this five-wave cycle looks promising to develop into a medium-term uptrend, it may be deeply reversed first. The current correction is expected to extend to $1.0580 or $0.9660, respectively, the 50 percent and the 7 percent retracements of the downtrend from $1.1650 to $0.9510.

A break above $1.1360 could lead to a gain to $1.1650.