Coffee Commodity Elliott Wave Technical Analysis

Coffee prices are nearing the February 2022 highs, showing a strong recovery from the October 2023 lows. Since then, coffee has surged by approximately 75%, indicating a strong uptrend. However, this rally is now approaching a critical point where profit-taking and selling pressure could intensify.

Long-Term Chart Analysis

Coffee Elliott Wave Technical Analysis

Historically, coffee prices have moved within a wide trading range, with support levels between $40 and $55 and resistance levels between $276 and $337. The current bullish cycle began in May 2019. The initial phase of this uptrend peaked in February 2022, reaching key highs. This was followed by a corrective phase that bottomed out in January 2023. The ongoing third phase of this bullish cycle started after this low and is unfolding in what appears to be a corrective pattern within the broader Elliott wave structure.

Coffee Commodity Daily Chart Analysis

The daily chart shows that the third phase of this recovery completed its first leg, labeled as wave (W), in April 2023. Afterward, coffee entered a three-wave corrective structure known as wave (X), which found support at 143.70 in October 2023. The current rally represents wave (Y) of the primary degree wave W (circled). Upon the completion of this move, a significant pullback in wave X (circled) is expected, signaling the beginning of the next correction. Given that wave (Y) is nearing the completion of wave W (circled), a major pullback may be imminent.

Coffee-Commodity-1D-...


Coffee Commodity H4 Chart Analysis

On the H4 chart, wave (Y) of W (circled) is close to finishing, likely within an ending diagonal pattern, which often indicates trend exhaustion. This structure is expected to complete slightly above the 250 price level. If coffee encounters resistance around this level and fails to sustain rallies beyond 250, a corrective decline is anticipated in the coming weeks. This would align with the broader Elliott wave analysis, supporting the scenario of a multi-month correction as the market transitions into wave X (circled) of the higher-degree structure.

Technical Analyst: Sanmi Adeagbo

Source: visit Tradinglounge.com and learn From the Experts Join TradingLounge Here 

See Previous: Soybean Elliott Wave Technical Analysis

Special Trial Offer - 0.76 Cents a Day for 3 Months! Click here

Access 7 Analysts Over 200 Markets Covered. Chat Room With Support

Coffee-Commodity-4h-...

This analysis underscores the potential for a significant reversal as coffee approaches key resistance levels, paving the way for a corrective phase ahead.

Related

Ethereum Crypto Price News Today Using ETHUSD Elliott Wave Technical Analysis: Potential Breakout from Wave (2) to Wave (3)

Ethereum Crypto Price News Today Using ETHUSD Elliott Wave Technical Analysis: Potential Breakout from Wave (2) to Wave (3)

Ethereum (ETH/USD) is currently in a corrective Elliott Wave pattern, positioned in Wave (2) within ...

Read More >
Unlocking ASX Trading Success: COMPUTERSHARE LIMITED. - CPU Stock Analysis & Elliott Wave Technical Forecast

Unlocking ASX Trading Success: COMPUTERSHARE LIMITED. - CPU Stock Analysis & Elliott Wave Technical Forecast

This comprehensive report offers an in-depth Elliott Wave Technical Analysis of COMPUTERSHARE LIMITE...

Read More >
Kotak Mahindra Bank – KOTAKBANK Stocks Elliott Wave Technical Analysis with Chart Insights, and Potential Future Movements

Kotak Mahindra Bank – KOTAKBANK Stocks Elliott Wave Technical Analysis with Chart Insights, and Potential Future Movements

Explore the comprehensive analysis of Kotak Mahindra Bank's stock with Elliott Wave theory. Lear...

Read More >
USDCAD Currency Pair Analysis with Forex Market Structure - USD/CAD Elliott Wave Technical Analysis

USDCAD Currency Pair Analysis with Forex Market Structure - USD/CAD Elliott Wave Technical Analysis

This article provides an in-depth USD/CAD Elliott Wave analysis, covering both daily and 4-hour char...

Read More >
Understanding of the New Zealand Dollar/U.S. Dollar Currency Pair with our detailed NZD/USD Elliott Wave analysis

Understanding of the New Zealand Dollar/U.S. Dollar Currency Pair with our detailed NZD/USD Elliott Wave analysis

Gain a comprehensive understanding of the NZD/USD currency pair with our detailed Elliott Wave analy...

Read More >
U.S.Dollar/Japanese Yen(USDJPY) Forex Elliott Wave Technical Analysis: Navigating Market Trends with Predictive Currency Insights

U.S.Dollar/Japanese Yen(USDJPY) Forex Elliott Wave Technical Analysis: Navigating Market Trends with Predictive Currency Insights

Our USDJPY Elliott Wave Analysis provides a detailed examination of potential price movements for th...

Read More >

Buy 1 Month

Get 3 Months!

Special Offer:

Trade Recommendations

Unleash the power of deversified trading with our comprehensive portfolio, covering:

  • Stock Trades
  • Crypto Trades
  • Forex Trades
  • Commodity Trades
Elliott Wave Analysis

Gain a competive edge with expert insights in to:

  • Global Indices
  • US Stocks & ASX Stocks
  • Forex & Crypto
  • Commodities
Top-Notch Trading Tools

Equip yourself with the tools of success:

  • Social Chat
  • Elliott Wave Algorithm
  • Screener
  • TradingLevels
  • Trading Game
7 Elliott Wave Analysts

Stay ahead of the market with daily charts and insightful videos
-Your secret to strategic trading!

JOIN HERE


Welcome to TradingLounge (ASIC A.R.No. 321187), specialists in trades, trading education and technical analysis, covering stocks, indices, commodities, forex and cryptocurrencies.

When you join TradingLounge you have access to everything we offer, including trade tools, educational content and a social platform to chat with like-minded investors.

Read more

@Copyright 2024 by tradinglounge.com

Contact Us

Australian no: 02 4787 6020

International no: +61 (2) 47876020

Pay with:

Find us on