SINGAPORE: New York December coffee is expected to test a resistance at $1.9430 per lb, as its fall from the Oct. 13 high of $2.2545 has completed.
The fall has adopted a five-wave mode, and all the five waves have unfolded. A more convincing signal is that the fifth wave labelled 5 has bottomed around a support at $1.8690, the 61.8 Fibonacci retracement on the rise from the July 15 low of $1.6310 to $2.2545.
Coffee is rebounding to the 50 percent level at $1.9430, the 50 percent level, a break above which will lead to a further gain towards $2.0165, the 38.2 percent level.
** 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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