The support was provided by the 50 percent Fibonacci retracement on the rise from the July 15 low of $1.6310 to the Oct. 13 high of $2.2545. Even though a spinning top formed on Oct. 23, this candlestick pattern itself may not work as a reversal signal.
Most likely, coffee will keep on falling towards the 61.8 percent level at $1.8690. However, a break above $1.9430, now a resistance, could indicate a bullish reversal, and the 38.2 percent level at $2.0165 will be targeted.
** 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.