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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 futures contracts gained ground on Friday, but prices failed into resistance at 12.35. The market closed at 12.18. The stochastics are falling but remain in overbought territory the MACD diff is converged on the downside suggesting lower prices in the near term. The rejection of resistance could set the scene for lower prices, keeping the ascending triangle. To confirm the weakening stochastics and MACD diff and rejection of the resistance, prices need to break below trend support towards 11.50. The 40 DMA is starting to improve and is at 11.10. The reaffirmation of resistance at this level could set the scene for higher prices in the long term. To confirm the ascending triangle, prices need to take out resistance at 12.35. The key level on the upside was at 12.90 before closing the gap.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures weakened on Friday as selling pressure prompted a test of support at the 100 DMA. The market closed at 359.80. The stochastics are falling, the gap between them suggesting strong pressure on the downside, exemplified by the bearish engulfing candle and MACD diff becoming negative and diverging. In order to keep momentum on the downside, prices need to take out support at the 100 DMA and 38.2% fib level at 354.85. Secondary support stands at 344.95. On the upside, appetite for prices below the 100 DMA could set the scene for higher prices towards 380. Apprehension amongst traders has prevented prices from breaking resistance at 380 and the bulls need to do this in order to regain upside momentum.

NY 2nd Month Coffee Futures 

NY coffee futures edged lower on Friday, prices failed above the 10 DMA set the scene for lower prices towards, the market closed at 95.90. The indicators lack conviction as the MACD diff is negative but the stochastics are starting to improve suggesting higher prices. Selling pressure remains a threat and momentum is still on the downside as trend resistance holds firm. The descending still intact and prices need to take out support at 95 before targeting support at 93 and then 90. This would help to confirm the descending triangle. On the upside, appetite for prices below support could set the scene for higher prices towards 100 before testing the support at the 40 DMA. This is expected to provide resistance and we expect prices to remain on the back foot.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures gained ground on Friday as appetite for prices around 1150 prompted a close at 1168. The stochastics are in negative territory as is the MACD diff but the reaffirmation of support at 1150 on Friday could set the scene for higher prices towards 1200 if this level holds firm we would see a head and shoulders formed. A subsequent break of the 100 DMA would prompt prices to regain upside momentum, the market needs to take out resistance at 1267. The moving averages are starting to converging and the 10 DMA is about to cross below the 100 DMA outlining the weak sentiment in recent weeks. A break below 1150 could set the scene for lower prices towards 1100.

NY 2nd Month Cocoa Futures 

NY cocoa futures failed into previous trend resistance on Friday, prompting a close at 2252. The stochastics are falling and the MACD diff is negative and diverging suggesting lower prices. Friday’s shooting star and failure into resistance could set the scene for lower prices towards 2200. A breach of this level could trigger losses back towards 2165 before 2100. On the upside, prices need to take out previous trend resistance and then the 40 DMA at 2361 in order to confirm the outlook on the upside. We expect prices to remain on the downside in the near term but this would be confirmed by a break below 2200.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures buckled on Friday as lack of appetite for prices above 1700 triggered a close at 1690. The ADX and DMI outlined the strong negative trend in recent weeks. The MACD diff is negative but fails to diverge further, the failure above 1700 could set the scene for lower prices through 1600 in the near term, this would help confirm the descending triangle. On the upside, futures need to break above trend resistance before 1750 in the medium term. However, momentum is firmly on the downside and selling pressure is strong so we expect futures to continue on the downside.

Contents

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