Coffee is the correction over

Mthokozisi Mpofu Knars Capital

The chart below shows Coffee, which has been in a correction since the 4th of September. It has formed an ending diagonal just above the 78.6
Fibonacci level, giving us a possible signal that the correction lower might just be over.

The move higher that started on the 15th of June is marked, in five waves, and after a five-wave impulse, we can expect a correction, then a
continuation on a larger degree.

We will be looking for a break of 110.11 and a retest to confirm the move higher with targets above 130.00. The current count will be
invalidated, by a break of the 94.07. We have high volatility expected next week due to the USA election.

Res: 110.00; 119.80; 125.59
Sup: 103.42; 100.00; 94.07

Author

Mthokozisi Mpofu

Knars Capital

Mthokozisi Mpofu is the Managing Director of Knars Capital Pvt Ltd, an investment advisory firm helping African SMEs secure growth capital and become investor-ready.

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