Technical Update - Coffee breaking out of correction pattern
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Coffee has broken bullish out of correction pattern
Coffee (KCc1) has broken bullish out of Symmetrical Triangle corrective pattern and fast approaching triangle peak at $252.35.
Short term target is likely to be 1.382 Fibonacci projection of the triangle peak and low, at around $264.50. However, after a bullish triangle break out price usually move as much as 1.618 of the triangle peak to low which would be around $272. However, there is no strong resistance before $287-$300 area. See monthly chart
RSI showing no divergence on both daily and monthly indicates higher levels are likely
For this bullish scenario to be demolished Coffee price needs to drop below $230.
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