Markets

NY coffee to rebound to $2.4505/lb

Published Updated

Even though the downtrend has adopted a five-wave mode, the contract still hovers above the trough of the wave "5" at $2.3510, a drop below which is critical to confirm a further fall towards $2.2315, a low touched on Oct. 3.

The rebound to a high at $2.4390 during the previous trading session may have only completed the first leg, and the second leg will push the price up to $2.4505, the 50 percent Fibonacci retracement on the fall from $2.55 to $2.3510.

Copyright Reuters, 2011