SINGAPORE: New York March coffee may break a support at $1.0605 per lb and fall to $1.0340, as suggested by its wave pattern and a projection analysis.
The support is provided by the 61.8 percent projection level of a downward wave (c) from $1.1715. Generally, a 61.8 percent projection level is a strong support. However, in the case of coffee, the bounce triggered by $1.0605 was very weak. It has been reversed. The reversal signals an extension of the wave (c) towards $1.0340.
Resistance is at $1.0815, a break above which could lead to a gain into the range of $1.1025-$1.1290.
Note: Coffee report is published twice a week - Tuesday and Thursday.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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