Robusta coffee term January 2023 (LRCF23) recovered quite well when trading alone, up 28 USD (+1.54%), closing price at 1,842 USD/ton.
The DXY index fell slightly 0.20% to 105.75 amid the US Thanksgiving holiday and investors expected the Fed to slow down the rate hike to 0.5% at the next meeting. G7 foreign currencies and commodity markets both gained and recovered against the USD, in which Robusta coffee also benefited from the recovery when trading alone, unaffected by Arabica coffee prices.
In general, the increase of Robusta yesterday was mainly due to technical factors as investors rebalanced their positions and increased buying because the price fell into oversold lows for a long time. In Vietnam, due to the influence of tropical depression, scattered rain in many places in the Central Highlands coffee growing area interrupted the process of harvesting and drying coffee.
According to technical analysis, yesterday’s price recovery helped to break the short-term downtrend for Robusta coffee. Technical indicators are showing bullish momentum still. It is expected that in the short term, the price will still struggle to accumulate and increase to find resistance to the immediate target area of 1870-1880. If the momentum is good, it can further test the 1900 price area, Robusta will close above 1900-1910. will be attractive enough to trigger buying, a new uptrend will form clearly.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1810-1815 USD,
- Support zone 2: 1785-1790 USD,
- Proportional buy, stop loss 1770 USD.
CL SELL DOWN:
- Resistance level 1: 1855-1860 USD,
- Resistance level 2: 1875-1880 USD,
- Sell proportionally, stop loss $1910.
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