NY coffee may rise into $2.9435-$3.1785 range in Q4

SINGAPORE, Sept 27 (Reuters): New York coffee may break resistance at $2.7705 per lb in the fourth quarter and rise into the $2.9435 to $3.1785 range.

The contract is believed to be riding on a powerful wave (C) from $1.45, which is the third wave of a big three-wave cycle from the May 2019 low of $0.8760.

A projection analysis on this wave reveals its extension above the key resistance at $2.5180, the 61.8% level. Chances are this wave could travel to $3.1785.

A separate calculation based on a bullish pennant suggests a similar target. The drop from the weekly high of $2.6045 in the week of Sept. 16 is classified as a pullback towards $2.5180.

With a higher high at $2.7275 touched on Sept. 26, the pullback is considered complete. Market is unlikely to fall towards $2.5180 again.