Coffee Elliott Wave technical analysis [Video]

Coffee Elliott Wave analysis

Coffee breached the May 2011 high that was set over 13 years ago. Thus, with the recent high, the commodity has reached a fresh record high, even surpassing the previous record high set in March 1977. The commodity has gained about 80% in the last 1 year making it one of the most profitable commodities for investors. With the current record rally, where next can this commodity find resistance?

Coffee long term analysis

From the long-term perspective, the all-time chart from the early 70s is sideways/corrective/choppy. After completing a bearish zigzag structure in May 2019, the commodity began another corrective zigzag structure to the upside. From May 2019, the price completed wave W of the cycle degree in February 2022 and then followed by wave X pullback of the same degree in January 2023. 

Coffee daily chart analysis

Since January 2023 the cycle degree wave Y has also evolved into a double zigzag structure finishing wave ((W)) and ((X)) in April and May 2024 respectively and now in ((Y)). Within ((Y)) as the daily chart shows, the price completed waves (W) and (X) and is now in wave C of (Y). By extension, we expect wave ((Y)) to finish at 317.65-425. While the price has entered this zone, the structure appears incomplete and thus, we could see the commodity reach 358 or even higher. This means that buyers can still take positions from pullbacks to higher prices.

Coffee four-hour chart analysis

On the H4 chart, the price may have finished wave ((ii)) of C or may turn lower in a double zigzag toward 298. However, while 290.35 is not breached, wave ((iii)) should extend to higher prices along the path of wave C of (Y)of ((Y)).

Coffee Elliott Wave technical analysis [Video]