SINGAPORE: New York March coffee may retest support at $1.5490 per lb after completing its current rebound around resistance at $1.5910.
Support and resistance are identified respectively as the 100 percent and the 61.8 percent Fibonacci projection levels of a downward wave c, the third wave of a three wave cycle that developed from the Feb. 6 high of $1.6975.
This wave is far from complete, as based on the consolidation range from the Feb. 3 low of $1.5840 to $1.6975, it may travel into a lower range of $1.4655-$1.4815, formed by the 176.4 percent and the 161.8 percent projection levels.
The strong resistance is at $1.5910, the 61.8 percent level, which could be a limit to the current rebound.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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