Robusta coffee term September 2022 (LRCU22) continued its strong upward momentum, increasing by 36 USD (+1.62%), closing price at 2252 USD/ton.
In the last session of the week, the US consumer confidence index data released better than forecast, plus the US CPI data in July decreased the increase compared to the previous month, helping the market to reinforce the belief that the inflation in the US has passed the level. peak and the Fed will be softer in raising interest rates to curb inflation in the upcoming meetings. Because of that, the USD has lost its safe-haven position because the cash flow was sold off strongly and weakened. Speculative cash flow has shifted to commodities and coffee prices on both bourses benefited from a strong increase.
Inventories of Robusta that meet ICE London standards also recorded a new low on August 10 when reaching 97,970 tons. Another factor that also supports Robusta’s strong price increase in recent sessions is the strong buying power of speculators to prepare for the upcoming futures month.
According to technical analysis, Robusta price has continuously broken technical resistance levels without any difficulty.
In a week, Robusta trading has increased by nearly 11% from 2033 to a 7-month high of 2256.
Technical signals show that bullish momentum is still there, but RSI has entered the overbought zone, so in the short term, selling and profit taking is possible at any time.
This is too high a price area to open a new buy position. Customers should consider waiting for the downtrend to adjust to support levels to have a new trading strategy to avoid chasing prices at this price range.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2210-2215 USD,
- Support zone 2: 2180-2185 USD,
- Proportional buy, stop loss 2160 USD.
CL SELL DOWN:
- Resistance level 1: 2265-2270 USD,
- Resistance 2: 2285-2290 USD,
- Sell proportionally, stop loss $2310.
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