SINGAPORE: New York July coffee may test a support at $0.8990 per lb, a break below that could cause a loss to $0.8865.
The support is identified as the 50% projection level of a downward wave C from $0.9510. This wave was disrupted by a bounce from May 7 low of $0.8760. The bounce seems to have ended around a resistance at $0.9265.
A break above $0.9115 may signal the extension of the bounce towards $0.9265. On the daily chart, coffee failed to break a falling trendline. The failure signals a continuation of a wave C from $1.1285, which may travel to $0.8355, its 100% projection level.
Note: Coffee report is published twice a week - Tuesday and Thursday.
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** 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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