#Coffee – Triangle Formation

#Coffee (D1) – Triangle Formation & Potential Wave 5 Extension
Current price: $386.4
Coffee futures are developing a triangle continuation pattern, signaling possible breakout toward the next impulsive wave — likely wave 5 within the broader bullish sequence.

🧩 Technical Context
• The market completed a clean 1–2–3–4 wave sequence since the August low (~$330).
• Current structure consolidates inside a symmetrical triangle, typical before a wave 5 breakout.
• The pattern is forming above key supports, confirming mid-term bullish bias.

📈 Wave 5 Projection
• Potential breakout direction: upward continuation
• Stop-loss: below wave 4 low (~$355)
• Fibonacci-based upside projections:
– 0.786 Fib → $416
– 1.0 Fib → $432
– 1.2 Fib → $448
– 1.618 Fib → $480
– 2.0 Fib → $508
– 2.618 Fib → $556
Expected wave 5 may extend toward $480–$500 if breakout confirms with volume.

🧭 Summary
• D1 structure indicates triangle consolidation in a bullish trend.
• Breakout above $390 would confirm the start of wave 5.
• Stop remains below the wave 4 low (~$355) to protect against false breaks.
• Momentum and volume confirmation are key for trend continuation.