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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 consolidated yesterday as intraday trading saw prices supported at 10.30 once again. The MACD diff is positive but converges on the upside as the stochastics also start to fall. The reaffirmation of support at 10.31 could set the scene for higher prices back to 11. Once again secondary resistance stands at 11.50 but apprehension amongst traders above 11 has capped recent gains and this week’s candles have had upside tails suggesting rejection of higher prices. Appetite for prices at 10.30 been relatively robust but near term momentum is in favour of the downside and if prices break below this level we could see a move through 10 to 9.50, which would help confirm the descending triangle.

London 2nd Month Sugar Futures

London sugar futures held their nerve yesterday after failing into the previous day’s high at 330.35 and closed at 327.40. The stochastics are elevated but are starting to top out as the stochastics also converge in positive territory. The rejection of prices at the 50% fib level caused a double top, this in conjunction with the weakening indicators suggest lower prices in the near term. If futures hold above 320 this may prompt a re-test of the 50% fib level in the medium term. Conversely, a breach of support at 320 may set the scene for a test of 310.

NY 2nd Month Coffee Futures

NY coffee futures sold off yesterday, helping to confirm the previous day’s doji and inside day. The market closed at 107.35. The stochastics could give a sell signal and the MACD diff lacks conviction. Yesterday’s protracted selling pressure prompted close below key support and this could set the scene for lower prices to trend support at 104. A close below trend support could set the scene for losses to 100. On the upside, appetite for prices below 107 has prompted the market to test 115 and then 120 in previous months. However, futures need to close back above 110 and then take out the double top around 113.

London 2nd Month Coffee Futures

London coffee futures weakened yesterday as intraday trading prompted a close on the lows at 1180. The stochastics are falling and have given a sell signal as the MACD diff converges in positive territory. Activity holds above 138.2% fib level but yesterday’s full candle suggests that we could see futures weaken in the near term back towards 1150. This would keep the downtrend intact and outline the rejection of prices at the 40 DMA. The longer-term target on the downside is the lower trend channel at 1100. On the upside, reaffirmation of support at 1173 could trigger gains through 1205 and before targeting 1250. Near term, the risk is skewed to the downside.

NY 2nd Month Cocoa Futures

NY cocoa futures sold off yesterday, reversing the previous day’s activity, the market was supported at 2340 and closed at 2402. The indicators are starting to lack upside impetus and following yesterday’s candle we could see futures edge lower in the near term. Yesterday’s bearish engulfing candle strong rejection of the 200 DMA could set the scene for lower prices in the longer term. The rejection of prices at the 200 DMA has kept long term momentum on the downside. However, the recovery back above 2400 does suggest an appetite for prices below 2350 and if trend support continues to hold firm, this could trigger gains through the 200 DMA in the longer run.

London 2nd Month Cocoa Futures

London cocoa futures tanked yesterday as protracted selling pressure caused the market to close at 1922. The indicators are starting to weaken and to confirm yesterday’s bearish engulfing candle futures need to break below 1891 and then challenge 1843. The market held above the 100 DMA yesterday which may set the scene for higher prices back to 1950. The reaffirmation of support at the 100 DMA yesterday may strengthen the upside trend in the longer term.

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