In this technical blog, we will look at the past performance of 4 hour Elliott Wave Charts of Coffee futures ticker symbol: $KC_F, which we presented to members at the elliottwave-forecast. In which, the rally from 04 November 2020 low unfolded as an impulse structure. And showed a higher high sequence favored more upside extension to take place. Therefore, we advised members not to sell the Coffee & buy the dips in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:
Coffee 4 Hour Elliott Wave Chart
Above is the 4hr Elliott wave Chart of Coffee from the 3/31/2021 update. In which, the instrument is showing 5 waves rally from $102.14 low in an impulse sequence where wave 1 ended at $131.75 high. Wave 2 ended at $120.20 low, wave 3 ended at $139.60, wave 4 ended at $136.15 and wave 5 ended at $140.45 high thus completed wave (1). Down from there, the Coffee made a pullback to correct the cycle from 11/04/2020 low.
The internals of that pullback unfolded as Elliott wave zigzag structure where wave A ended at $126.60. Wave B bounce ended at $135.65 high and wave C managed to reach the blue box area at $122.02- $113.60. From where buyers were expected to appear looking for more upside or for a 3 wave bounce at least. (It’s important to note that with further data we were able to adjust the degree of a pullback into a double three structure instead of a zigzag).
Coffee Latest 4 Hour Chart
Here’s the latest 4hr Elliott wave Chart of Coffee from the 4/22/2021 update. In which the commodity is showing a strong reaction higher taking place from the blue box area. Right after ending the double three corrections within the blue box area at $120.50 low. Allowed members to create a risk-free position shortly after taking the long positions at the blue box area. However, a break above $140.45 high still needed to confirm the next extension higher & avoid double correction lower.
Source: https://elliottwave-forecast.com/commodities/coffee-bouncing-blue-box-area/