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Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

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NY Sugar 2nd Month Futures

NY sugar futures edged higher yesterday as appetite for prices at 9.20 triggered a close at 9.52. Momentum is firmly still on the back foot as the stochastics are overbought. The MACD diff is positive but has converged and is about to cross on the downside. The ADX is high and the DMI is negative outlining the negative trend. The close back above 9.50 may prompt a more positive day today but futures need to close above 10 to regain upside momentum. The indicators are weak and we expect prices to remain on the back foot.

Ldn 2nd Month Futures

London sugar futures gained ground yesterday as support at 300 held firm prompting a close at 305.50. The stochastics have started to improve on the upside and to confirm the rejection of the descending triangle prices need to break trend resistance and test 335.07. The 40 DMA has closed in and we expect this to provide resistance. On the downside, if futures fail at trend resistance, this would reaffirm the trend and may set the scene for a confirmation of the descending triangle.

NY Coffee 2nd Month Futures

NY coffee futures consolidated yesterday. Prices failed at 108.55, prompting a close at 107.60. The stochastics are falling, as the MACD diff is negative and diverging suggesting lower prices in the near term. The inside day and spinning top candle suggest a continuation of the recent trend. To confirm the double top at 108.55 need to be confirmed by a test of and break of trend support. On the upside, futures need to close above 110 and then target the moving averages at 113 to 115.50. The key psychological level at 121.50.

Ldn Coffee 2nd Month Futures

London coffee futures have started to turn higher, protracted buying pressure triggered a close at 1180. The stochastics are rising and the MACD diff is converging on the downside. This suggests higher prices in the near term towards 1209.42 with secondary resistance at the upper trend channel. Yesterday’s activity confirmed the hammer candle. Conversely, on the downside lack of appetite for prices above 1170 could set the scene for a retracement back to 1150.

NY Cocoa 2nd Month Futures

NY cocoa futures failed above the 40 DMA to close at 2342. The stochastics are trending higher and are nearly in overbought territory. The MACD diff is positive but struggles to gain traction. The repeated rejection of prices at 2400 could trigger losses through near term trend support. To confirm the rejection of prices, futures need to breach 2200. On the upside, prices need to take out resistance at 2400 and then target 2492 in the medium term.

Ldn Cocoa 2nd Month Futures

London cocoa futures tested support and resistance but failed to break either and the market closed at 1900. The stochastics have converged and look to be topping out. The tails on the downside outline buying pressure at the 100 DMA and a break of 1940 would set the scene for higher prices back to 2000 and confirm the double bottom. On the downside,  rejection of resistance at 1927 could trigger losses through the 100 DMA towards 1840.

 

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