Robusta coffee term September 2022 (LRCU22) continued to adjust slightly down, down 7 USD (-0.31%), closing price at 2217 USD/ton.
US retail sales data in July were stable while personal spending increased, helping the market to ease fears that the US will not fall into an economic recession. However, the market still bets on the next rate hike of the Fed with more than 50% predicting an increase of 0.75%. Therefore, the USD continues to be the preferred haven for money flow, USD slightly increased 0.27% to 106.76. Commodities, specifically coffee, were affected on both bourses and could not maintain their upward momentum even though inventory information supported the rally.
Inventories of Robusta that met the ICE London floor were recorded a decrease of 1.91% compared to the previous week, to 98,180 tons. Meanwhile, there are not many real sources of goods available domestically in Brazil and Vietnam, and farmers continue to hold their goods to wait for higher prices before they can export.
According to technical analysis, all technical indicators are giving price signals and bearish momentum is looking to support the 2180 – 2200 zone. Besides, the 14-day RSI is still above the overbought zone at 71.96%, so a correction is likely. This reduction has not stopped yet. Limit catching the bottom to buy and open a new position in the current high price zone when the downward correction is still there.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2200-2205 USD,
- Support zone 2: 2180-2185 USD,
- Proportional buy, stop loss 2160 USD.
CL SELL DOWN:
- Resistance 1: 2245-2250 USD,
- Resistance level 2: $2265-2270,
- Proportional sell, stop loss $2,285.
Banks accompanying coffee businesses:
Sacombank is a bank that can supply commodity price derivatives with the permission of the State Bank of Vietnam, and is a reputable long-term partner of major commodity exchanges in the world such as CBOT, CME, NYMEX, LME … aims to help customers limit risks on market prices, increase business profits, protect capital …
Interested please contact: 028 6288 4100 / [email protected] or click here for more details.
