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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 gained ground yesterday but failed above 12, and closed at 11.96. The stochastics are rising and the MACD diff is converging on the downside suggesting improved buying pressure. The RSI is rising as well, and if the market manages to gain a footing above 12 and then breach 12.35 in order to regain upside conviction. This would confirm the reaffirmation of support at the 40 DMA. On the downside, the rejection of prices above 12 could set the scene for another breach of the 100 DMA to 40 DMA, a break of this level would confirm the recent downturn in prices and reaffirmation resistance at 12. We expect prices to improve in the near term towards 12.35.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures gained ground on Friday as intraday trading saw prices fail at 360. The market closed at 355. The indicators start to improve as the stochastics emerge from oversold territory, the MACD diff is negative but is starting to improve outlining buying pressure. Yesterday’s shooting star candle suggests lack of appetite for higher prices and could trigger losses towards 340. The market has been supported at the 50% fib level in recent weeks. On the upside, prices need to gain a footing above 360 and then the 23.6% fib level. The longer-term target is 380, a break here would help confirm the trend of higher prices and the reaffirmation of support at the 50% fib level.

NY 2nd Month Coffee Futures 

NY coffee futures edged higher yesterday as buying pressure prompted a test of resistance at 102.18. The stochastics are rising on the upside suggesting higher prices. The MACD diff is diverging on the upside helping to confirm the outlook of for higher prices in the medium term. Futures need to gain a footing above the 40 DMA at 102.18 and then target previous trend support at 106.10 before the 100 DMA at 108.53. The rejection of higher prices suggests a lack of appetite for prices above the 40 DMA. This could set the scene for a break back below 100 towards 95.80, confirming the upside tails and rejection of the 40 DMA.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures gained ground yesterday as buying pressure prompted a close at 1187. The stochastics are rising towards overbought and the gap between them suggests positive momentum. The MACD diff is still negative but has converged suggesting improving buying pressure. Prices have rejected the 40DMA in recent sessions, and this reaffirmation of resistance could set the scene for lower prices back to 1173 to 1145. A triple bottom has been formed at 1150 and if futures break above the 40 DMA this would help to confirm this pattern. The long term resistance level remains at 1267 and breach of this level in the longer term would suggest a trend of higher prices.

NY 2nd Month Cocoa Futures 

NY cocoa futures sold off sharply yesterday as protracted selling pressure continued, causing a close at 2186. The stochastics are falling towards oversold, and the MACD diff is negative and diverging suggesting lower prices in the near term. The rejection of prices at 2400 and three full candles suggests strong downside momentum. A break of support at 2186 would confirm the trend on the downside and may trigger losses to 2100. Selling pressure is strong but support between 2186 and 2200 has been robust in recent months and this could trigger some of the recent losses to be taken back. In the long run, the 200 DMA is the key level prices need to break in order to suggest a change in trend. We anticipate prices to soften in the near term.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures have sold off in recent sessions as selling pressure has caused futures to take out support and close on the back foot at 1620. The stochastics are falling and the MACD diff is negative suggesting lower prices. The ADX and DMI outline the downside trend, selling pressure could see futures take out support at 1600. Secondary support at 1560 is a key level of support, a break here could set the scene for lower prices towards 1500. To gain traction on the upside, prices need to take back some of the recent losses and then gain a footing above 1685. However, selling pressure is strong and we expect this to continue.

Contents

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

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