Robusta coffee term T11/2022 (LRCX22) saw a downward correction after many consecutive hot sessions, down 36 USD (-1.53%), closing price at 2312 USD/ton.
Data on new manufacturing orders and US apartment sales released yesterday was quite gloomy, causing the dollar to correct slightly by 0.05% to 108.57. The market is still watching the Fed’s speeches and data on CPI, the labor market to have more judgment about the Fed’s interest rate hike in the next September meeting. Currently, the rate that predicts a 0.75% interest rate increase is 59%, and a 0.5% rate increase is 41%.
Inventories of Robusta coffee meeting London floor standards continued a series of days of decline, as of August 24, London coffee inventories decreased slightly by 100 tons, to 95,860 tons. The inventory factor somewhat restrained the drop of Robusta yesterday, which was mainly corrected by technical factors when the price entered the overbought zone.
According to technical analysis, yesterday’s technical correction was still quite gentle when the price increased strongly for many consecutive sessions. The 14-day RSI shows that the price is still above the overbought zone at 73.34% and the 1H MACD shows bearish momentum, and the support is still at the support zone near 2260-2280. If Robusta price continues to have a downward correction and recovery, it is an opportunity to exit and reduce the previous unfavorable buying position because it is still too early to determine that the price will fall deeply again.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2285-2290 USD
- Support zone 2: 2265-2270 USD
- Proportional buy, stop loss 2240 USD
CL SELL DOWN:
- Resistance 1: 2345-2350 USD
- Resistance 2: 2365-2350 USD
- Proportional sell, stop loss $2390
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