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Elliott Wave: ICE Robusta coffee futures may continue its short term uptrend

For long term trend, since early February 2017, ICE Robusta coffee futures has developed a period of downside corrective consolidation that I believe to follow a Contracting Triangle (CT) wave pattern within the five wave string A-B-C-D-E. On July ICE Robusta coffee futures’ H4 chart, we can see that after making a breakout downside from the Contracting Triangle (CT) wave pattern in wave b of A, the market moved down to make lows around $1,870/ton. That downside leg also finished wave A to start for wave B.

Click the image for larger view

For intermediate term, I expect wave B will develop in a Zigzag (ZZ) wave pattern that has three legs a-b-c. Wave B will target $2,195 – $2,215/ton resistance zones.

For short term trend, at present, the prices start to develop wave (v) of a in B. I appreciate the possibility that July ICE Arabica coffee futures will continue the uptrend to target $2,082/ton resistance zone in the week to come, further may test $2,135 resistance zone before pausing for a downside correction for wave b. Short term bias is bullish.

Regarding trading strategy recommendation, I will suggest a buy order around $2,000/ton with stoploss at $1,975/ton and takeprofit at $2,075/ton.

Happy trading!

By Jack Huyn

Please be informed that information I provide is for educational purposes only and not intended as investment advice. Information and analysis above are derived from utilising methods believed to be reliable, but I cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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