A five-wave cycle from $1.0885 has completed, as indicated by its structure and the two failures of coffee to break a support at $0.9995, the 186.4 percent projection level of a big wave C from $1.1010.
These five waves make up a wave (3), which will be reversed further by the current wave (4). The bullish divergence on the hourly MACD suggests an extension of the wave (4).
Only a break below $0.9995 could confirm the continuation of the downtrend towards a zone of $0.9840-$0.9920.
Note: Coffee report is published twice a week - Tuesday and Thursday.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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.