TECHNICALS-NY coffee may retrace to $2.9435 in Q1

SINGAPORE, Dec 24 (Reuters) - New York coffee KCc2 may retrace to $2.9435 per lb in the first quarter of 2025, as suggested by its wave pattern and a projection analysis.

A big wave (c) from $1.45 may have completed around resistance at $3.4310, its 114.6% projection level, as suggested by the two shooting stars forming in December.

The structure of this wave looks a bit confusing. It could be divided into either three waves or five waves. Both wave modes suggest the occurrence of a decent correction.

A channel technique indicates a target zone of $2.7705 to $2.9435. The bottom of a wave (4) falls into a range of $2.3145 to $2.5180, which will become available once coffee breaks support at $2.7705.

A break above $3.2995 may trigger a weak gain to $3.4310. On the daily chart, a projection analysis on a wave (c) from $2.2015 reveals a series of projection levels that tightly control the price fluctuation.

Three waves make up the correction. The third wave, the wave c is unfolding towards $2.9820 to $3.0740 range. The death cross on the daily MACD suggests a further drop as well.

The current bearish outlook will remain intact, as long as market hovers below resistance at $3.3155. This outlook will be reviewed, only if the contract overcomes this barrier.

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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

** No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

(Reporting by Wang Tao;)

((wang.tao@tr.com +65 6973 8364/9188 4196))