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Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

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2nd Month NY Sugar Futures 

NY sugar futures edged higher yesterday as futures surged higher to challenge the 10 DMA at 10.81. The market failed above this level and closed at 10.32. The indicators are falling back into oversold territory, the MACD is negative and lacks conviction. To confirm the rejection of prices at 10.80, prices need to break 10, the 138.2% fib level at 9.51 is secondary. On the upside, futures if prices can gain a footing above 10.80 and then 11 to improve the outlook on the upside.

2nd Month London Sugar Futures 

London sugar futures edged lower yesterday after prices failed to break resistance at 335.07. The market closed at 322.80. The indicators are weakening and this could set the scene for lower prices in the near term. A break of support at 320 would help confirm the descending triangle. This secondary support stands at 310 before the robust level of 300. On the upside, a breach of 332.76 and the 50% fib level would prompt prices to regain some momentum on the upside. We expect prices to remain on the back foot in the near term.

2nd Month NY Coffee Futures 

NY Coffee futures gained ground yesterday as buying pressure prompted a test of 121.50. The market closed just off the highs at 120.70. The stochastics are falling out of oversold territory but the MACD diff is positive and starting to diverge. If prices fail to break above the 38.2% fib level this could set the scene for higher prices to 130. The reaffirmation of support at the 100 DMA improves the outlook on the upside.

2nd Month London Coffee Futures 

London Coffee futures bounced higher yesterday as intraday trading caused a close at 1234. The stochastics are falling towards oversold territory but the MACD diff is positive and the RSI is also improving. The full candle and reaffirmation of support at 123.6% and 1209. A break of resistance at 1268 could set the scene for a test of 1324. On the downside, a break of support at 1200 could trigger losses back to 1173 with the 150% fib level at 1145. We anticipate prices will improve on the upside in the near term.

2nd Month NY Cocoa Futures 

NY Cocoa futures gained ground yesterday, futures were well supported below 2240 prompting a close at 2278. The stochastics are improving and the MACD diff is also positive and diverges on the upside. Futures need to take out resistance at 2300 before targeting trend resistance at 2364. A breakout of the pennant would help improve the outlook on the upside, conversely, a break of support at 2200 and then 2165 would regain downside momentum.

2nd Month London Cocoa Futures 

London Cocoa futures edged higher yesterday as appetite for prices at 1750, prompting a close at 1764. The RSI improves on the upside and the stochastics look set to give a buy signal. The MACD diff is negative but is starting to converge. A breach of trend resistance would set the scene for higher prices in the near term towards 1875 which would help confirm the ascending triangle. On the downside, a break of support at 1729 and then 1700 would prompt rejection of the descending triangle.

 

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A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

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