Robusta coffee term T11/2022 (LRCX22) with a lot of supportive information had a good price recovery, up 38 USD (+1.70%), closing price at 2276 USD/ton.
Not standing outside the game, yesterday the ECB also raised interest rates to 0.75% with the goal of controlling inflation. The region’s inflation rate is currently at 9.1% and is still struggling to come out of the energy crisis. With the move to raise interest rates by major central banks, the probability that the Fed will raise interest rates by 0.75% is now 87%.
Inventories of coffee meeting London floor standards as of the end of September 7 remained unchanged, at 91,222 tons. According to the General Department of Vietnam Customs, coffee exports in August of Vietnam decreased by 1.2%. Limited supply is supporting the price of Robusta coffee during this period.
According to technical analysis, Robusta price is still temporarily in the range of 2200-2360 and all technical indicators are showing neutral signals.
It is expected that in the short term, the price will still fluctuate in the upper range, but breaking the support zone at 2180-2200 could trigger a strong drop to the 2140-2150 zone.
On the contrary, if the price increases and sustains above the 2300-2320 zone, it will attract the strong buyers to buy more with the next expected resistance area at 2350-2360.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2225-2230 USD,
- Support zone 2: 2205-2210 USD,
- Proportional buy, stop loss $2170.
CL SELL DOWN:
- Resistance level 1: 2285-2290 USD,
- Resistance 2: 2305-2310 USD,
- Proportional sell, stop loss $2340.
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