Arabica coffee term September 2022 (KCEU22) reversed to increase and recovered, gaining 3.35 cents (+1.62%), closing price at 210.05 cents/lbs.
Commodity prices in general and coffee in particular had a strong recovery thanks to the inflow of investment money, increasing long positions as the attraction of the USD has cooled down somewhat. As usual, the increase and decrease amplitude of the New York floor coffee price was somewhat stronger than the London floor coffee price due to monetary factors when the Real recovered strongly against the USD, 1 USD = 5.35-5.37 BRL.
The Somar Met reported last week that Brazil’s main coffee-growing region, Minas Gerais, has not received any rain, raising concerns among producers and traders about a drought that could cause a drop in coffee production in Brazil. during the harvest itself.
According to technical analysis, the price of Arabica coffee is still fluctuating and accumulating within the range, the direction of the price is still unclear. In the context of the market waiting for information about the Fed’s interest rate hike, Arabica price is still in a downtrend, accumulating support in the short term with the near resistance zone at 203-205 and further if it loses the 200 mark again. then it is possible to find the old bottom zone 193-194. On the contrary, the price must test and maintain above 220-223 to be attractive enough to trigger strong buying.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 205 – 205.5 cents
- Support zone 2: 201-201.5 cents
- Stop Loss: 197 cents
CL SELL DOWN:
- Resistance zone 1: 215 – 215.5 cents
- Resistance zone 2: 219-219.5 cents
- Stop Loss: 225 cents
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