NY coffee to test $1.5745

The downtrend from the Nov. 8 high of $1.76 has been developing within a channel, which indicates an aggressive target around $1.50. The trend consists of five waves and the final wave, labelled e, is unfolding towards $1.5745.

A Fibonacci retracement analysis on the uptrend from the March 1 low of $1.1940 to $1.76 reveals a realistic target at $1.5440, the 38.2 percent level, which will be open once the low at $1.5745 is broken.

Resistance is at $1.6185 (refer to the first chart), the 23.6 percent Fibonacci retracement of the downtrend from $1.76 to $1.5745. A break above this barrier could lead to a gain to $1.6455.