Coffee Commodity Elliott Wave Technical Analysis
Coffee’s Bullish Momentum Continues Beyond February 2022 High
Coffee recently surpassed its February 2022 high, continuing the long-term bullish corrective cycle that began in May 2019. In the long-term forecast, coffee prices could potentially reach 317, representing a 28% increase from the current levels. This presents an opportunity for buyers to consider purchasing during price dips along the upward trend.
Long-Term Bullish Cycle Overview
The long-term corrective cycle for coffee began in May 2019. In Elliott Wave terms, most corrective structures, aside from triangles, follow a 3-wave pattern. The first wave, referred to as cycle degree wave w, concluded in February 2022. Following this, cycle degree wave x pulled back, ending in January 2023. From this point, the cycle degree wave y commenced.
Wave y Development on Coffee Commodity Daily Chart
The daily chart illustrates the ongoing development of cycle degree wave y, which is subdivided into wave ((W))-((X))-((Y)). Both wave ((W)) and ((X)) have completed, and coffee is currently in wave ((Y)). Within wave ((Y)), the price is in a corrective pullback for wave ((b)) of Y of (W) of ((Y)). This structure suggests that the overall trend remains bullish, with the potential for fresh rallies emerging from pullbacks at various degrees.
Coffee Commodity Chart Analysis: Ongoing Pullback in Wave ((b))
The H4 chart provides a closer view of the ongoing wave ((b)) pullback. Currently, wave ((b)) appears to be in its third sub-wave, labeled as wave (c) of ((b)). Although the final structure of wave (c) is still developing, the pullback is expected to conclude above 221.2. Should the price reverse upward and break the high of wave ((a)), the likelihood of additional rallies from this corrective dip will increase significantly.
Technical Analyst: Sanmi Adeagbo
Source: visit Tradinglounge.com and learn From the Experts Join TradingLounge Here
See Previous: Cron Elliott Wave Technical Analysis
VALUE Offer - Buy 1 Month & Get 3 Months!Click here
Access 7 Analysts Over 200 Markets Covered. Chat Room With Support
