SINGAPORE: 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.
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