Robusta coffee term T11/2022 (LRCX22) continued its downward trend, down 44 USD (-2.20%), closing price at 1.957 USD/ton.
The US stock indexes all gained strongly for 2 consecutive sessions ahead of the announcement of US business results this week. The market expects that with a positive business result, it will somewhat restrain the rate of interest rate increase of the Fed in the upcoming meetings. Yields on US bonds and the dollar also rose. The USD index rose 0.72% to 111.91. Prices of metal goods and agricultural products also continue to dye red.
The downward pressure of Robusta coffee prices is also reinforced by the information of abundant supply from Vietnam when the world’s largest Robusta producer has begun to harvest a new crop with an estimated output of 30 million. The bags will be shipped directly to the market in about 5-7 weeks (no impact on inventory data). In addition, Robusta inventories meeting London floor standards also increased by 390 tons to 89,810 tons as of October 20.
According to technical analysis, RSI is currently in the oversold area of 25.06%, MACD is still diverging parallel to the downtrend 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 the 1920 zone. -1930, the lowest low in 3 months. On the other side, if there is a technical rebound when it has penetrated deep into the oversold zone, 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: 1985-1990 USD,
- Resistance level 2: 2005-2010 USD,
- Sell proportionally, stop loss 2050 USD.
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