Arabica coffee for September 2022 (KCEU22) was mixed with London floor coffee, down 1.10 cents (-0.49%), closing price at 225.50 cents/lbs.
Arabica coffee price had a downward correction session after many previous hot rising sessions. One of the reasons for this decline is that the USD has gained and recovered against a basket of currencies of other risky assets because the market is concerned about the negative economic indicators from China that may affect the market. The global economy in general should have bought USD to hoard again. The Real decreased slightly by 0.35% against the USD, 1 USD = 5.092 BRL.
The decline in ICE-standard coffee inventories shows no sign of stopping, reaching 571,850 bags on Monday, August 15. According to data from Somar Met, Arabica Minas Gerais growing area received 17.8 mm of rain last week, which has eased farmers’ fears of dry weather causing frost, so Arabica prices no longer have an excuse to increase sharply. strongly but back to a downward correction.
According to technical analysis, in the short term, the technical indicators show neutral signals, the price is still struggling sideways in the range of 210-230. However, the price is still maintaining above the convergence point of the MA lines, so the next rally is expected to conquer the resistance level of 240. On the contrary, the area 208-210 becomes a hard support area in the short term for Arabica price. .
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 221 – 221.5 cents
- Support zone 2: 218-218.5 cents
- Stop Loss: 216 cents
CL SELL DOWN:
- Resistance zone 1: 228.5 – 229 cents
- Resistance zone 2: 231.5-232 cents
- Stop Loss: 236 cents
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