NY March coffee targets $1.2195

SINGAPORE: New York March coffee may break a resistance at $1.1750 per lb and rise to the next resistance at $1.2195, as suggested by its wave pattern and a retracement analysis.

A correction from $1.2920 has completed at $1.1120, slightly above a support at $1.1025, the 61.8 percent retracement of the uptrend from $0.9855 to $1.2920.

The rise from $1.1120 consists of three waves. The third wave labelled c has just started. It is capable of travelling far above the peak of the wave a.

Support is at $1.1390, a break below which could cause a loss to $1.1025.