Robusta coffee term 03/2023 (LRCH23) reversed to decrease, down 9 USD (-0.47%), closing price at 1,907 USD/ton.
The DXY index was mostly unchanged from the previous session’s close at 102.26 amid the Martin Luther King Jr. holiday market. and with inflation in the US easing after the release of US consumer price data, investors expect the Fed will reduce the rate of interest rate hike to 0.25% at its meeting next month.
Currency and commodity markets both fell against the dollar, Robusta coffee was also affected by a slight decline in price when trading alone.
Standard inventories of ICE London floor recorded a slight decrease at 63,970 tons as of January 12. However, according to a report from the General Statistics Office of Vietnam, coffee exports from January to December of Vietnam increased by 13.8% year-on-year to 1.8 million tons. This factor has put pressure on Robusta coffee prices.
According to technical analysis, yesterday’s slight correction still did not have much impact on technical signals as the indexes still showed that increasing momentum was still there. Robusta price still remains firmly above 1900 level, so it is expected that in the short term, the price may continue to increase and find the next resistance at the MA100 line, which is the level of 1930 or beyond, the zone of 1950.. Customers should not catch the top to open a new sell position when the uptrend is still strong.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUY strategy:
- Support zone 1: 1895-1900 USD,
- Support zone 2: 1885-1890 USD,
- Proportional buy, stop loss $1879.
DOWN SELL Strategy:
- Resistance level 1: 1915-1920 USD,
- Resistance level 2: 1925-1930 USD,
- Sell proportionally, stop loss 1936 USD.
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