Robusta coffee term T11/2022 (LRCX22) fell sharply in the session, at the end of the session recovered slightly, down 6 USD (-0.31%), closing price at 1.951 USD/ton.
Information on US consumer spending was less positive, partly reflecting the consequences of the Fed’s series of intense interest rate hikes, the dollar fell into a bearish zone, followed by a decline of 0.83% to 110.93, a basket of currencies. G7 recovered strongly. The commodity market was mostly still engulfed in the red, including agricultural products and coffee on both exchanges due to fears of an economic recession and high lending rates, negatively affecting demand. production expansion of the seller and the consumption demand of the buyer.
The downward pressure of Robusta coffee prices is also reinforced by the recent strong depreciation of Vietnam Dong. A weak VND will stimulate exports more strongly to earn more VND, so the supply of Robusta from Vietnam to the world market increases sharply despite the data of coffee inventories that meet London floor standards still recorded a decrease.
According to technical analysis, the price of Robusta in the session sometimes fell to the lowest level of 1929 and retested the 3-month bottom in the 1920-1930 price range. Struggling at the 1930 price area for a long time, then rebounded at the end of the session but still remained in the downtrend channel. RSI is continuously maintaining in the oversold area, MACD is still diverging parallel to the downward direction with no signs of reversal, so it is expected that in the short term, the price will continue to trend down and find support to retest the 1920-1930 area. On the other side, if there is an upward force of technical recovery, the price may recover to the 1980-2000 zone and struggle there. Exceeding the psychological level of 2000 creates an easier psychology for Robusta prices.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1930-1935 USD,
- Support zone 2: 1905-1910 USD,
- Proportional buy, stop loss $1880.
CL SELL DOWN:
- Resistance level 1: 1975-1980 USD,
- Resistance level 2: 1995-2000 USD,
- Sell proportionally, stop loss 2025 USD.
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