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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 lost ground yesterday as selling pressure remains to pronounce, prices closed at 12.05. The MACD diff is negative and starting to diverge suggesting strong selling pressure, the RSI is also falling. To help confirm the selling pressure from the stochastics, prices need to close towards the 40 DMA. Selling pressure recently has been strong outlined by the full candles on the downside and the indicators alike suggest lower prices in the near term. On the upside, if futures can find support between the 40 DMA and 12 in the near term this could set the scene for higher prices back above 12.35 before targeting 13. We expect prices to soften in the near term.

Ldn 2nd Month Sugar Futures

London sugar futures softened yesterday as intraday trading caused prices to break below 340, to close at 338.10. The stochastics are falling into oversold territory, the ADX and DMI are starting to rise suggesting the rising trend on the downside. The MACD diff is negative and diverging suggesting lower prices. The break below support helps to confirm the breakout of the symmetrical triangle. Secondary support stands at 334.80. On the upside, futures need to close above 340 we could see prices target the 100 DMA at 346.36. We expect near term momentum will continue to favour the downside.

NY 2nd Month Coffee Futures 

NY coffee futures consolidated yesterday as futures found support around 95.80, the market closed at 97.75. The stochastics are falling towards oversold, and the MACD diff is positive and converging. The RSI is neutral and this could set the scene for lower prices. The recent consolidation above key support suggests we could see prices push back above 100. The 40 DMA has closed in and this could set the scene for lower prices if resistance holds firm. Secondary resistance stands at 104.65, a break here could see prices target the 100 DMA at 108.02. On the downside, if selling takes out support at 95.80, we could see futures fall towards 93. Repeated reaffirmation of support at 95 indicates higher prices on the upside.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures consolidated yesterday as futures failed to confirm the bullish engulfing candle and closed at 1215. The stochastics are in overbought territory, the MACD diff is positive and diverging suggesting positive momentum is on the front foot. If prices can hold above key support at the 100 DMA we could see futures target 1250 before 1267, in order to confirm an improving trend on the upside, prices need to take out 1267. On the downside, failure to hold above the 100 DMA we could see prices buckle below towards 1173. This would confirm rejection of the bullish engulfing candle on Monday. We expect prices to hold above the 100 today.

NY 2nd Month Cocoa Futures 

NY cocoa edged lower yesterday, prices were supported below 2140 prompting and close at 2155. The MACD diff lacks conviction and this could set the scene for lower prices towards the recent low at 2100. The stochastics are starting to rise out of the oversold territory, and in order to confirm the improving outlook on the upside, futures need to take out 2200 and then target the 40 DMA at 2293. The key level on the upside is trend resistance where futures have failed. On the downside, rejection of prices around 2200 could set the scene for lower prices through the recent low, this would help confirm the outlook of lower prices.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa continues to trend lower as trend resistance holds firm, futures failed to close back above support of 1560 at 1557. The MACD diff is negative and has converged on the downside suggesting higher prices but price action fails to confirm the outlook. The stochastics are falling and are in oversold territory, futures need to break above trend resistance and then 1600. A medium-term target on the upside is 1684 and a break above this level could trigger gains towards 1800 in the long term. On the downside, momentum is on the downside we could see prices test support at 1500 as rallies are sold and the trend remains weak.

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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