New York May coffee may break a support at $1.1405 per lb and fall to the next support at $1.1240, as suggested by its wave pattern and a Fibonacci projection analysis.
The sharp drop on Monday confirmed an extension of a downward wave C. In most cases, a wave C could travel to its 138.2 percent projection level or to the 161.8 percent level. Coffee may maintain its current bearish momentum to fall more to $1.1240.
Resistance is at $1.1510, a break above which may lead to a gain to $1.1675. 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.
BY S. Kamal Hayder Kazmi
(Pakistan &Gulf Economist)