The zone was formed by three highs at $2.7262, $2.74 and $2.77, touched respectively in January 1986, July 1994 and May 1997.
Obviously, coffee failed to break the resistance zone, as following its brief piercing above $2.77, it fell sharply from a record high at $2.9665 below $2.7262 - the low of the zone.
A Fibonacci retracement analysis on the sharp rise - which is too sharp to be sustainable, reveals a deep retracement will drive coffee down to $2.1245, the 50 percent level on the rise from the February 2010 low at $1.2825 to $2.9665.
Chances are remote for coffee to rise above $2.9665, which seems to have become an upside limit when considering it is near the previous three historic highs.
** 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.