Coffee Elliott Wave Analysis

Coffee Prices Poised for a Potential Rebound After Correction

Coffee prices continue their corrective decline from the February peak, breaking below the previous $366 support level. The pullback is developing as wave ((4)) of III and may extend toward the $355.13 - $330.79 zone, where fresh buying interest could emerge to resume the broader impulsive trend from the October 2023 low.

Daily Chart Analysis

Structurally, the daily chart suggests that wave ((II)) concluded in January 2023, followed by the development of wave I and II of (III). The subsequent rally in wave III, which began in October 2023, appears extended, with the current retracement unfolding as a double zigzag correction in wave ((4)). Once this correction completes, wave ((5)) of III should take over, leading to the final push in this impulse sequence before a larger wave IV correction.

H4 Chart Analysis

Zooming into the H4 timeframe, the ongoing correction is unfolding in the sub-wave structure of wave ((4)). The decline is currently in wave (Y) of the double zigzag pattern and may extend lower into the $355.13 - $330.79 price zone, a potential area for wave ((4)) completion. If price stabilizes in this region, it could trigger fresh long entries, setting the stage for the final leg of wave III.

Traders should monitor this key support zone closely, as the anticipated bullish reversal could mark the beginning of the next impulsive move higher.

Technical Analyst : Sanmi Adeagbo

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