SINGAPORE: New York May coffee may bounce moderately to $0.8810 per lb and then resume its fall towards the range of $0.8505-$0.8621.
The contract has found a temporary support at $0.8620, the 176.4 percent projection level of a downtrend from $0.9485. This support is strengthened by a similar one established by a falling trendline. A weak bounce has been triggered, towards $0.8810.
Wave pattern suggests coffee is riding on a wave 5, which looks incomplete. It may extend below April 17 low of $0.8635. A break above $0.8810 could lead to a gain to $0.8925.
Note: Coffee report is published twice a week - Tuesday and Thursday.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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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