SINGAPORE: New York July coffee may test a support at $0.9145 per lb, with a good chance of breaking below this level and falling to $0.9045.
The support is identified as the 23.6 percent retracement of the downtrend from $0.9940 to $0.89. Coffee failed to break this support in its first attempt on April 23.
Driven by a wave c, the contract is likely to overcome this barrier this time, as the wave c is capable of travelling to $0.9045, its 100 percent projection level.
Resistance is at $0.9295, a break above which could lead to a gain to $0.9420.
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 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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