Robusta coffee term September 2022 (LRCU22) continued to increase slightly, increasing by 4 USD (+0.18%), closing price at 2256 USD/ton.
After many consecutive losing sessions, the USD index had a recovery session of 0.45% to 106.15 after China released negative economic data due to the impact of many prolonged blockades because of the epidemic. Covid made the market worried that the health of the world’s second largest economy would affect the global economy. Fed officials said that although US inflation has decreased slightly, it is still too early to declare that the policy of raising interest rates has curbed inflation. Prices of risky assets and some commodities fell.
Inventories of Robusta that meet ICE London standards are still recording at a low level of less than 100,000 tons and have not shown any signs of recovery because supply in Brazil and Vietnam are tight. This information helps Robusta coffee escape the general downward trend of the market.
According to technical analysis, Robusta price had a downward correction to 2223 at the opening session, then gradually increased and recovered at the end of the session. The technical indicators are all showing bullish momentum is still present and the next resistance area is heading towards 228x-229x. On the contrary, the close support is at 212x-213x. It should be noted that the RSI shows that the price is still in the overbought area, so there may be a further correction before any further upward move, limiting buying and chasing prices at this high price zone.
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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