SINGAPORE: New York September coffee may retest a resistance at $0.9640 per lb, a break above which could lead to a gain at $0.9790.
The resistance is identified as the 138.2pc projection level of a downward wave (c) from $1.1065.
The trend could be broken down into five waves.
The first wave labelled 1 and the fifth wave labelled 5 are roughly equal in length.
Such an equality, along with the bounce from the Aug. 13 low of $0.9315, suggests a reversal of the trend. Coffee is expected to rise towards the peak of wave 4 around $0.9885.
Support is at $0.94, a break below which could cause a fall to $0.9250.
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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