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Robusta Coffee Technical Analysis - Robusta Coffee Trading: 2023-02-21
Robusta Coffee Technical Analysis Summary
Above 2105
Buy Stop
Below 1888
Stop Loss
| Indicator | Signal |
| RSI | Neutral |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
Robusta Coffee Chart Analysis
Robusta Coffee Technical Analysis
On the daily timeframe, ROBUSTA: D1 is in a wide neutral channel. It went up from the Bullish Flag figure and is trying to move towards the upper border of the neutral channel. Several technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if ROBUSTA: D1 rises above the last high: 2105. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, the 200-day moving average line, the lower Bollinger band, and the last 2 lower fractals: 1888. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. After making a trade, the most cautious traders can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (1888) without activating the order (2105), it is recommended to delete the order: there are internal changes in the market that were not taken into account.
Fundamental Analysis of Commodities - Robusta Coffee
Heavy rains in Brazil can damage coffee crops. Will ROBUSTA quotes increase further?
The Brazilian state of Minas Gerais produces approximately 30% of arabica coffee. Now there are heavy rains that can damage the crop. Theoretically, a lack of arabica coffee could increase the demand for robusta. An additional positive may be the message of the Green Coffee Association on the reduction of coffee stocks in the US in January 2023 by 1.8% m/m to 6.26 million bags. In addition, the Cecafe agency reported a decrease in green coffee exports from Brazil in January 2023 by 18.5% y/y to 2.52 million bags. Exports from Colombia in January decreased by 19% y/y to 835 thousand bags and from Guatemala - by 8% y/y to 172.4 thousand bags. For Robusta coffee, the good news could be a decrease in exports from Vietnam in January by 27.7% y/y to 142.5 thousand tons. We also note the forecast of the Volcafe agricultural trader about a possible global shortage of Robusta coffee in the 2023/2024 season. It can be 5.6 million bags. The main reason for this may be the reduction of the Robusta coffee crop in Indonesia in the 2023/2024 season to a 10-year low due to heavy rains and bad weather. Recall that on February 20 there was no coffee trading due to a holiday in the USA (Washington's Birthday).
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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.
