Robusta coffee term T11/2022 (LRCX22) continued its negative downward trend, down 55 USD (-2.82%), closing price at 1,896 USD/ton.
The dollar continued the correction down 0.59% to 110.28 while the market was waiting for more US GDP data and other economic indicators to be released tonight. The G7 currency basket rebounded strongly. The commodity market was mostly still engulfed in red, including agricultural products and coffee on both exchanges due to concerns about economic recession and high lending interest rates, negatively affecting demand. production expansion of the seller and the consumption demand of the buyer. At this time, the monetary factor, namely the strength of the USD, no longer affects the price of coffee.
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, although the RSI has penetrated deeply into the oversold area for many sessions, touching 20.81%, but the cash flow has not yet poured in to catch the bottom and open the buy position, the market continued to sell off, causing Robusta to hit a low level. in the last 15 months. The bearish momentum is still strong and the nearest price support is also located in the 1830 – 1850 zone, so in general, Robusta price is still dyed in a negative gray color. Customers prioritize increasing the proportion of safe cash and limit selling when the price has fallen deeply for many consecutive sessions.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1865-1870 USD,
- Support zone 2: 1845-1850 USD,
- Proportional buy, stop loss $1810.
CL SELL DOWN:
- Resistance level 1: 1945-1950 USD,
- Resistance level 2: 1990-1995 USD,
- Proportional sell, stop loss 2015 USD.
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