On August 25, Elliott Wave International’s Commodity Pro Service editor, Jim Martens, saw something in the coffee chart that bothered him.
He showed this chart and told subscribers:
“The bullish outlook stands, but if a larger wave II correction is unfolding, coffee will turn lower from nearby levels. The overlapping rise from 293.25 to a double top near 341.80 could represent wave ((B)) of a flat correction.”
Coffee gapped lower two days later.
On August 27, Jim updated his forecast:
“As warned on Tuesday, the double top represents wave ((B)) of a larger wave II correction: a flat. Wave (C) should exceed the end of wave (A) at 293.25, and wave II will retrace 61.8% of wave I at 273.90.”
What Happened Next
Less than a month later, December coffee reached the 273.90 objective Jim had identified.
From Jim’s August 27 outlook to the target, coffee declined approximately 12.6%.
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