Robusta coffee term T9/2022 (LRCU22) returned to the upside and recovered well, gaining 30 USD (+1.47%), closing price at 2073 USD/ton.
The market is waiting for US CPI data to be released tomorrow, which is the main measure of US inflation with a slight decrease in US CPI and also the basis for forecasting the upcoming Fed interest rate hike. The USD was therefore sold off, adjusted down against a basket of foreign currencies and commodities, speculative money flow therefore also poured into gold and the commodity market in which coffee on both exchanges benefited.
The price of coffee on both floors was supported by the information that inventories of standard coffee on both floors decreased rapidly. In which, Robusta inventories decreased to 100,440 tons.
According to technical analysis, the Robusta price yesterday increased strongly, surpassing the resistance levels near to test the 2100 mark with the highest price recorded at 2096. Although it weakened slightly at the end of the session, the price closed. 2073 is also above the moving averages, and the MACD shows bullish momentum. However, yesterday’s strong buying force made the price fall into the overbought zone when it had increased continuously for many sessions, a corrective technical selling might appear. It is expected that the price will retest the 2100 level, if successful, it can continue to struggle in the resistance area of 2100-2130, otherwise the 203x-206x area is a close support for Robusta.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2035-2040 USD
- Support zone 2: 2005-2010 USD
- Proportional buy, stop loss 1985 USD
CL SELL DOWN:
- Resistance 1: 2095-2100 USD
- Resistance 2: 2125-2130 USD
- Proportional sell, stop loss $2,155
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