Coffee Elliott Wave analysis
Coffee is trading lower in the second half of October 2024 after completing a corrective bounce in the 2nd week. However, while the long-term Elliott wave forecast expects the commodity to resume the bullish cycles from October 2001 and a more recent one in June 2019, the short-term to medium-term pullback will most likely continue to the lows of August/September 2024.
The long-term bullish corrective cycle started in May 2019. Aside from triangles, corrective structures are often subdivided into 3-waves. The first wave ended in February 2022 - cycle degree wave w. A pullback for the cycle degree wave x followed and ended in January 2023. From there, the cycle degree wave y began.
Daily chart analysis
The daily chart captures the wave development of the cycle degree wave y - subdivided into wave ((W))-((X))-((Y)). Wave ((W)) and ((X)) ended already and price is in ((Y)). Along ((Y)), the price is currently in a pullback for ((b)) of Y of (W) of ((Y)). This summarizes that the upside is still favored for Coffee and prices should make fresh rallies from pullbacks of different degrees.
Four-hour chart analysis
On the H4 chart, the pullback from the $275 Sept-2024 high should continue lower for wave (c) of ((b)) where it could find support within the 223.85-216.80 Fibonacci zone. At this zone, wave ((c)) could begin upside to complete wave (W) of ((Y)).
Thus, while the pullback from $275 may process lower in the short term, the larger bullish trend should resume and that’s what traders should focus on.
Coffee Elliott Wave technical analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
EUR/USD struggles to gain traction, holds steady near 1.0850
EUR/USD finds it difficult to build on previous Friday's gains and trades in a tight channel at around 1.0850 on Monday. The cautious market mood and dovish comments from ECB officials don't allow the pair to gain traction as focus shifts to Fedspeak.
GBP/USD falls below 1.3050 on USD resilience
GBP/USD stays on the back foot and trades in the red below 1.3050 on Monday, undermined by a modest USD strength. In the absence of high-tier data releases, the souring risk mood further weighs on the pair. Investors await comments from Fed policymakers.
Gold extends rally to new record-high above $2,730
Gold continues to push higher and trades at a new record-high above $2,730 amid escalating geopolitical tensions on Monday. Israel stepped up bombing of Beirut and is reportedly poised to launch a retaliatory attack on Iran after a bomb exploded near Netanyahu’s house.
Three fundamentals for the week: Middle East escalation, BoC decision and US Jobless Claims stand out Premium
An Israeli attack against Iran may stir markets ahead of the US elections. The Bank of Canada is set to slash rates, impacting Fed expectations. US Jobless Claims remain a bellwether for the wider economy.
US elections: Top ten investor questions answered
As the US elections approach, investors are seeking clarity on how potential outcomes will affect the markets. Whether it’s fiscal policies, trade, or sector-specific impacts, each candidate’s agenda could shape the financial landscape for years to come.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.