Robusta coffee term T11/2022 (LRCX22) could not maintain its uptrend and turned down sharply, down 44 USD (-2.15%), closing price at 2,001 USD/ton.
The USD had a correction span down 0.63% to 112.176. The market continued to react according to rumors that the upcoming Fed interest rate meeting next month would be lenient, the interest rate hike would be lighter, ranging from 0.5-0.75% instead of 0.75-1%. of the previous forecast because of concerns that with the current rate of interest rate hikes, the US and global economies will not last long. The commodity basket also had different increases and decreases when gold and crude oil prices increased, while the group of metals and industrial raw materials such as rubber and coffee both saw a decrease in value.
According to the General Department of Vietnam Customs, coffee exports in the first half of October reached 36,156 tons, accumulated in the first 9.5 months of the crop year increased by 11.05% to 23.01 million bags. Export value also increased strongly by 35.45%, equivalent to 3.16 billion USD. This information reflects the abundant supply of Robusta coffee, so the price of Robusta has a long slide.
According to technical analysis, the technical and psychological support level of 2000 seems to be too fragile as it has been successfully penetrated twice and the current technical indicators still show bearish momentum. RSI is currently in the oversold zone of 28.73%. It is expected that the price may continue to drop to find support in the 1950-1960 zone and encounter a technical rebound when it has penetrated deeply into the oversold area.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1975-1980 USD,
- Support zone 2: 1955-1960 USD,
- Proportional buy, stop loss 1935 USD.
CL SELL DOWN:
- Resistance level 1: 2030-2035 USD,
- Resistance level 2: 2060-2065 USD,
- Proportional sell, stop loss $2090.
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