SINGAPORE: New York July coffee may stabilize around a support at $0.9150 per lb, and retest a resistance at $0.9340.
The support is provided by the 61.8pc projection level of an upward wave C from $0.8845.
This wave briefly pierced above the resistance at $0.9340 twice.
This unusual move strongly indicates an extension of the wave C towards $0.9530, unless the support at $0.9150 fails to hold.
A break below this support could cause a loss into the range of $0.9035-$0.9095.
The pattern from the May 7 low of $0.8760 looks like a double-bottom, which will be confirmed when coffee breaks $0.9340.
It indicates a target around $0.9740.
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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