SINGAPORE: New York September coffee may retrace to $1.0765 per lb, as suggested by its wave pattern and a Fibonacci ratio analysis.
The sharp rise on Monday was driven by a wave c, the third wave of an irregular flat from the July 8 low of $1.0530. This wave is roughly 1.618 times the length of the first wave labelled a. The wave c could have peaked around $1.1085, its 161.8% projection level.
Another projection analysis reveals a resistance at $1.1035, the 76.4% level of an upward wave C from $0.9625. It works together with the one at $1.1085 to stop the rise.
A break above $1.1085 could lead to a gain at $1.1220.
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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