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Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

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NY 2nd Month Sugar Futures

NY sugar futures reversed the previous day’s activity. Support at the 40 DMA at 10.63 closing at 11.02. The stochastics are improving on the upside, and the gap between the stochastics suggests higher prices. The MACD diff is positive and diverging the reversal of the previous day’s activity and close above 11 could trigger a challenge of resistance at 11.50. Secondary resistance stands at 12.70. On the downside, lack of appetite could trigger losses back through 10.63 to 10.20. To confirm the rejection of prices above 11 and reaffirmation of resistance prices need to close back below 10. A breach of the recent low at 9.21 would confirm the trend.

 

London 2nd Month Sugar Futures

London sugar futures gained ground yesterday as protracted buying pressure prompted a close above 342.40. The stochastics are rising and the gap between them suggest higher prices in the near term. The  MACD diff is also improving on the upside but to confirm the bullish candles, futures need to break above the 50% fib level and target 365.07 which is the 100 DMA. On the downside, apprehension amongst traders could trigger some of yesterday’s gains to be given back, but the market needs to break back below 329.90 and 322.85 to regain downside momentum. Apprehension amongst traders at the 50% fib level has capped prices on the upside in recent months.

NY 2nd Month Coffee Futures

NY coffee futures gained ground yesterday protracted buying pressure triggered a breach of resistance at 108.55 and 110 to close at 110.65. The stochastics are rising and have given a buy signal, the MACD diff is negative and is converging suggesting higher prices. The full candle and close above 110 may prompt higher prices to 114.64. The long term pattern is still intact after the reaffirmation of trend support and we expect futures to trend towards trend resistance. On the downside, lack of appetite for higher prices could trigger losses back through 108 towards trend support at 103.75. The 100 DMA is falling and a cross below the 40 DMA could compound downside momentum.

London 2nd Month Coffee Futures

London coffee futures held their nerve yesterday as intraday trading saw futures fail into the 40 DMA at 1214 and closed at 1200. The stochastics are starting to converge, the MACD diff is positive and is starting to diverge. The rejection of prices at the 40 DMA could trigger losses to 1173.79, with secondary support at 1150. The long-legged doji suggests indecision in the market, suggesting a correction to the downside. On the upside, if futures break above the 40 DMA and the upper trend channel may prompt the market to target 100 DMA at 1284.

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower yesterday as prices failed above 2400 and prices closed above 2378. The stochastics are starting to top out and this could trigger losses back 2300 in the medium term. The MACD diff is also positive but is diverging, the upside tail yesterday suggests lack of appetite for prices above 2400. To confirm the shooting star candle, futures need to close below 2300. If the market holds above-trend support, the trend since the low will remain intact. Resistance at 2400 has capped gains, keeping futures within the recent range. On the upside, futures needs to close above 2400 and then target the 100 DMA at 2489.

London 2nd Month Cocoa Futures

London cocoa futures softened marginally yesterday as lack of appetite above 1915 triggered a test of support at 1900. The market closed at 1904. The stochastics are falling and this could trigger losses back to 1868, a subsequent breach of this level may prompt futures to target the lower trend channel at 1800. The reaffirmation of support at 1868 may set the scene for higher prices through 1927 towards 2000. A close above 1927 today would help the market regain upside momentum.

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