Robusta coffee term T11/2022 (LRCX22) continued its strong rally, increasing by 90 USD (+3.99%), closing price at 2348 USD/ton.
The USD continues to trend up, being a haven for money flow as the market is waiting for tomorrow’s Jackson Hole meeting, where the Fed chair will give a speech to help the market collect data to strengthen the possibility. The possibility of the Fed’s interest rate increase in the September meeting. However, the monetary factor temporarily gave way to basic information that supported the strong increase in coffee prices on both exchanges yesterday.
Inventories of Robusta coffee meeting London floor standards continued a series of days of decline, as of August 23, London coffee inventories were only 95,960 tons. The continuous decrease in inventories + the dry weather of Brazil has sparked the strong increase of Robusta coffee in recent sessions.
According to technical analysis, yesterday’s strong rally helped Robusta price continuously break the resistance levels of 2280 – 2300. The MACD shows bullish momentum, but the 14-day RSI shows that the price has entered the overbought area of 81.65%. a rather high level and it would be very dangerous to open a new buy position in this price range. Since the price is still trending up and looking for a new resistance level, “catching the top” is also quite risky. Customers should consider maintaining the safe cash ratio, if there is a downward correction, recovery is an opportunity to exit and reduce the previous unfavorable buying position.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2280-2285 USD
- Support zone 2: 2225-2230 USD
- Proportional buy, stop loss $2205
CL SELL DOWN:
- Resistance 1: 2375-2380 USD
- Resistance 2: 2400-2410 USD
- Proportional sell, stop loss 2450 USD
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