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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 edged lower yesterday closing at 12.48 but managed to consolidate the previous day’s gains, keeping momentum on the front foot. The stochastics are falling and the MACD diff is negative, this suggests lower prices in the near term, however the more responsive RSI is improving. The bullish candle on Wednesday and the reaffirmation of support at 12 could trigger gains towards 13. A break here could set the scene for higher prices towards 13.50. On the downside, a break below immediate support at 12.35 could trigger losses back towards through support at 12 and the 40 DMA at 11.95. The key level on the downside is 11.50 and a break of this level would suggest a change of trend.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures softened yesterday as selling pressure prompted a close at 348.50. The stochastics are showing signs of improvement as they have emerged from oversold territory. The MACD diff is negative and is converging on suggesting higher prices towards 355.80. The reaffirmation of support at 344.80 and bullish candle on Wednesday indicate we could see prices push back to 355.80. This suggests a rejection of the break out of the symmetrical triangle. However, if prices test previous trend support around 356 and reject this level, futures could break back below 334.80 suggesting a change in trend. To suggest higher prices, futures need to take out resistance at 360 and then target the recent high at 380.

NY 2nd Month Coffee Futures 

NY coffee futures gained ground yesterday as intraday trading prompted a test of the 10 DMA at 99 but the market closed just below this level at 98.35. The stochastics are falling and the MACD diff lacks conviction, the RSI is neutral and improving slightly as activity holds above key support. Price action continues to trade within a range but to regain upside momentum, prices need to close above 100 and then target the recent high towards 104.65. On the downside, a rejection of prices at the 40 DMA could trigger losses back through 95. Secondary support stands at 93 but we do not anticipate a test of this level in the near term.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures gained ground yesterday as protracted buying pressure triggered a close on the front foot at 1243. The stochastics are in overbought territory and the MACD diff is positive and diverging suggesting a trend on the upside. To confirm the improved outlook on the upside, we need to see prices take out resistance at 1250 and then 1267. On the downside, apprehension around 1250 could trigger losses back towards 1200,  break below the 100 DMA and then 1173 to confirm the outlook of lower prices. Since May the market has traded the same range and lacked conviction in the longer term, a break out of the recent to the upside could trigger gains through 1300 towards 1350.

NY 2nd Month Cocoa Futures 

NY cocoa futures gained ground yesterday after prices found support at 2115, the market closed at 2161. The RSI and stochastics are rising suggesting an improved outlook on the upside. The MACD diff is positive and starting to diverge, a close above 2200 would regain upside conviction. Secondary resistance stands at 2281 and this level is closing in. On the downside, lack of appetite for prices above 2160 could trigger losses through 2100. This would confirm the trend on the downside.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures held their nerve yesterday as intraday trading caused the market to close at 1541. The stochastics are rising but remain in oversold territory, the MACD diff is positive and diverging suggesting higher prices in the near term. The RSI is also rising, to confirm the outlook of higher prices futures need to close back above 1600 and then target 1680. The 40 DMA will start to close in and resist prices on the upside. On the downside, rejection of prices around 1600 could trigger losses back towards 1500. A break below this level would confirm the trend on the downside.

Contents

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