Coffee (KC_F) shows a 5 swing sequence from April 17, 2019 low, suggesting further upside is likely. Short term, the pullback to 94.94 ended wave ((X)). Rally from there is unfolding as azigzag Elliott Wave structure. Up from 94.94, wave A ended at 102.75 with subdivision as an impulse Elliott Wave structure.Wave B pullback ended at 99.6 as a double three Elliott Wave structure. Wave C reached 100% extension of wave A and proposed complete at 107.7.
Near term, Coffee is correcting cycle from June 17 low within wave (X) before the rally resumes. The structure of the pullback is still at the early stage and thus can unfold in various ways. The chart below proposes a double zigzag structure in wave (X). However, regardless what the structure of the pullback is, the main idea remains the same that as far as pivot at 94.94 low stays intact, it should extend higher again. We dont like selling the instrument and expect buyers to appear after pullback is complete in 3, 7, or 11 swing. The view remains valid as far as pivot at 94.94 low stays intact. Target to the upside is 100% extension from April 17 which comes at 114.75 119.44 to end the double three structure.