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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 buckled yesterday as selling pressure prompted a break of trend support, and close at 11.92. The stochastics are falling towards neutral territory and the MACD diff is also negative. The RSI is also falling, and the recent selling pressure could set the scene for lower prices towards 11.50. This would help confirm the rejection of resistance at 12.35 and rejection of the descending triangle. Futures remain supported at the 100 DMA but if prices closed below this level, in the near term this would help confirm downside impetus. On the upside, if futures are well supported around the 100 DMA and trend support and break above 12.35 in order to regain upside momentum. The longer-term resistance level at 12.93, and the gap at 12.93 and 12.97. The close on the low yesterday and indicators suggests that we could see lower prices.

Ldn 2nd Month Sugar Futures

Ldn sugar futures held their nerve yesterday as support and resistance held firm, prompting a close at 356.40. The stochastics are falling towards oversold territory, the gap between the stochastics suggests lower prices in the near term. The MACD diff is negative and diverging on the downside, the RSI is also weak but prices need to break 354.83 and the 100 DMA could set the scene for lower prices towards the 50% fib level, a break below the 38.2% fib level would help confirm the descending triangle. The 40 DMA is rising and this may support the market in the near term. On the upside, if futures are well supported at 356 and the 100 DMA prices need to close back above 367 to regain upside impetus. Secondary resistance is between 377-380 where the market has failed in recent weeks.

NY 2nd Month Coffee Futures

NY coffee futures held their nerve yesterday after prices failed into resistance at 100 and closed at 98.20. The stochastics are rising, and the MACD diff is positive and diverging suggesting improving sentiment on the upside. The market has been supported around 95 in recent weeks and this could set the scene for higher prices but the market needs to take out 100 and then 103.21. To confirm the break of trend resistance and rejection of the descending triangle prices need to take out resistance at the 40 DMA and challenge 108.67. On the downside, repeated failure into the 100 and yesterday’s candle may trigger losses through support at 95 and trigger losses to 93. Long term momentum is on the downside and we expect this to remain the case on the longer term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged lower yesterday as selling pressure triggered a close at 1185. The stochastics are starting to improve and the MACD diff is converging on the downside. The RSI is rising but prices need to take out the 40 DMA and then 123.6% fib level and the 100 DMA in order to regain upside conviction. The reaffirmation of support at the lower trend channel could set the scene for higher prices in the longer run. On the downside, rejection of prices at 1200 may set the scene for futures towards 1150. This level is key on the downside and a break of this level would help confirm downside momentum.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher yesterday after prices failed above 2300. The market closed at 2290. The stochastics are improving and the MACD diff is converging on the downside, suggesting an improvement of sentiment. The RSI is improving but the upside tails suggest prices are unable to hold onto the intraday highs. Prices need to close above 2300 before targeting the 40 DMA at 2361. The longer-term resistance level remains the 200 DMA at 2499 and futures need to break above this level in order to suggest a change in trend. On the downside, repeated rejection of lower prices through 2200 would prompt futures to regain downside momentum. The recent trend is on the downside but the consolidation above 2200 indicates robust support at this level.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures consolidated yesterday as intraday trading saw prices test trend resistance and the support. The market closed unchanged at 1694. The ADX and DMI are rising outlining the recent trend on the downside. The MACD diff is negative but is converging suggesting an improvement in market sentiment. The stochastics are rising but futures failed into trend resistance yesterday indicated lack of appetite for prices at this level. Support at 1684 has been robust and this could trigger gains on the upside through trend resistance and 1729. On the downside, rejection of higher prices may pave the way for lower prices through 1650. This would confirm the descending triangle. Yesterday’s long-legged doji suggests indecision in the market.  

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