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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 sold off on Friday as protracted selling pressure prompted a break of support at 11.77 to close on the back foot at 11.62. The stochastics are falling towards oversold and the MACD diff is negative and diverging, suggesting lower prices in the near term. The break of the 100 DMA at 11.77 and the bearish engulfing candle suggests lower prices. Primary and secondary support stands at 11.50 and 11.36 respectively before 11. If prices find support at 11.50, this could prompt a recovery back above the 100 DMA. In the medium term, we could see futures break above 12.35. This level has provided strong resistance in recent weeks and a close above this level would prompt prices to regain upside conviction. We anticipate prices to retreat in the near term.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures softened on Friday as intraday trading caused a test of appetite around the 50% fib level. The market partially recovered to 348.50. The indicators are firmly on the downside as the stochastics break into oversold territory and the MACD diff is negative. The break towards the 50% fib level on Friday indicates softer sentiment but futures need to close below this level in order to confirm negative sentiment. Conversely, support at the 50% fib level could trigger a test of 354.83. Secondary resistance stands at 360 before 367.05. We anticipate prices to remain on the back foot.

NY 2nd Month Coffee Futures 

NY coffee futures held their nerve on Friday after intraday trading saw prices supported below 97. The market closed at 96.65. The MACD diff is positive and the stochastics are also falling suggesting higher prices in the near term. In order to confirm the outlook of higher prices and the hammer candle, prices need to break above 100 and then the 40 DMA at 102.50. On the downside, rejection prices above 96.65 could trigger losses towards 95 and 93. The market has remained well supported towards 95 and this could prompt a test resistance at 98 and 100. The trend is on the downside and we expect this to remain the case in the near term.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures held their nerve on Friday, indecision in the market formed a spinning top candle. The market closed at 1153. The stochastics are falling and the MACD diff is negative suggesting lower prices. The stochastics are starting to converge and the market has been well supported at 1150 in recent weeks. This could trigger a test of resistance at 1173.80 before targeting 1196. On the downside, a break of support at 1150 would set the scene for lower prices to 1116.

NY 2nd Month Cocoa Futures 

NY cocoa futures tanked on Friday as protracted selling pressure caused a breach of support at 2354 and 2300 to close at 2275. The stochastic have started to converge suggesting lower prices but the MACD diff is still positive. We anticipate prices to retreat in the near term towards 2200, this would help confirm Friday’s bearish engulfing candle. The key level on the downside is the band of resistance between 2165 and 2200. On the upside,  support at previous trend resistance could trigger some of Friday’s losses to be taken back. We expect prices to remain weak in the near term.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures tanked on Friday as traders rejected prices above 1750 causing futures to close on the back foot at 1688. The indicators are starting to suggest lower prices as the MACD diff is converging in positive territory the stochastics are also converging. A sell signal from the stochastics and a continuation of selling pressure could set the scene for a break towards 1650. There has been appetite for pries at this level but a breach of support at 1650 would outline a continuation of lower highs lower lows. On the upside support below 1680, which we have seen previously could trigger gains towards 1730 but if prices fail into this level, momentum would remain on the downside.

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