SINGAPORE: New York December coffee may test resistance at $1.9920 per lb, a break above which could open the way towards $2.0430.
A bullish divergence appeared on the hourly RSI, signalling an exhaustion of the downtrend and a due bounce.
A projection analysis on a wave C from $2.3205 reveals support at $1.9235, which works together with another at $1.9235 to form a strong support zone.
A further drop from the current level may be limited to this zone if the anticipated bounce does not occur on Tuesday.