Coffee Elliott Wave analysis
Coffee has recovered from the late November sharp drop. The next breakout will see it trading at the highest prices since the 1970s. For many decades, prices have been in a $300-wide range. Is it about to break the range and reach for new highs?
Daily chart analysis
On the daily chart, the price is evolving into a double zigzag structure from the January 2023 low of $141.85. Wave ((W)) in April 2024 followed by a dip for wave ((X)) which ended in May 2024 where wave ((Y)) started. It now appears the price is upside along the path of wave (Y) of ((Y)). This shows room for more upside for buyers before a significant pullback follows.
Four-hour chart analysis
On the h4 chart, the price appears to have completed wave A of (Y) and perhaps wave B in early December if the current rally progresses above wave A high. Thus, the commodity will most likely advance toward $385 in the coming days. With this, a new record high should happen.
Technical analyst: Sanmi Adeagbo.
Coffee Elliott Wave analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
AUD/USD moves away from multi-year low amid easing fears about Trump's tariff plans
AUD/USD builds on the overnight bounce from its lowest level since April 2020 as reports of gradual Trump tariffs boost investors' sentiment and weigh on the USD. Bets that the Fed will pause its rate-cutting cycle, the RBA's dovish shift, China's economic woes and geopolitical risks act as a headwind for the Aussie.
USD/JPY hangs near a one-week low; the downside seems protected
USD/JPY languishes near a one-week low touched the previous day amid a softer USD, weighed down by reports that advisors on Trump’s incoming economic team are considering a gradual implementation of tariffs. However, the Fed's hawkish outlook is a tailwind for the buck.
Gold price regains positive traction amid retreating US bond yields, softer USD
Gold price attracts some dip-buyers during the Asian session on Tuesday and reverses a part of the previous day's retracement slide from a one-month top. Reports that Trump's top economic advisers are mulling a slow ramp-up in tariffs to avoid a sudden spike in inflation trigger a pullback in the US bond yields, which keeps the USD bulls on the defensive and benefits the XAU/USD.
Crypto Today: BTC price plunges 4%, Litecoin X account hacked; traders position for US inflation report
The cryptocurrency sector plunged by 5% on Monday, with over $148 billion wiped off the aggregate market capitalization. Bitcoin price dropped below $90,600 for the first time in 24 days, as traders anticipate the upcoming US CPI report.
Bitcoin falls below $92,000 as exchanges show overheating conditions
Bitcoin (BTC) continues its ongoing correction, falling below $92,000 on Monday after declining almost 4% last week. CryptoQuant data shows that BTC is overheating in exchanges and suggests further decline ahead.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.