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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 prices help their nerve on Friday as prices struggled at the 10 DMA and prices closed at 12.43. The stochastics are falling towards neutral territory, the MACD diff is negative but is not diverging and has remained constant. The RSI neutral, activity holds above key support at 12.35, and if this level holds firm we could see a re-test of 13 where futures failed earlier this month. On the downside, the shooting star candle could suggest lower prices in the near term but the market needs to break below support at 12.35 and then 12 and the 40 DMA at 11.98 in order to suggest a change in trend on the downside.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures were supported on Friday but failed to hold onto the intraday high and closed at 349.70. The stochastics are rising, the MACD diff is also converging on the downside suggesting an improved outlook on the upside. To confirm the bullish engulfing candle last week and the improving indicators, prices need to take out resistance at 355.93 and then break trend resistance at 360 to suggest higher prices in the medium term. However, on the downside prices have struggled above 350 in the last few sessions and if futures break below 344.71 and the 1000 DMA, we could see the market re-challenge 334.80. This level remains key on the downside and if futures break below this level we could see a change in trend.

NY 2nd Month Coffee Futures 

NY coffee futures gained ground on Friday as protracted buying pressure prompted a break above the 40 DMA and 100 to close on the front foot at 102.30. The stochastics are rising and the RSI is also improving suggesting higher prices. The MACD diff is positive and starting to diverge suggesting improving sentiment, to confirm the full candle and the improving indicators, futures need to test recent resistance at 104.65 and then target previous trend support at 107. The 100 DMA stands at 107.75 and we expect this level to provide resistance. A break here would set the scene for higher prices towards trend resistance at 112.85 in the long run. However, the market has struggled above 100 in recent weeks and failure to gain a footing above 100 could trigger a sell-off back below 100 towards 97. Long term support stands at 95 and a breach of this level could trigger losses towards 93.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures surged higher on Friday as intraday trading caused futures to break above resistance at 1250 and 1267, the market closed at 1267. The stochastics, RSI, MACD diff and DMI are all positive suggesting higher prices. The market is on the front foot after Friday’s activity but prices have struggled above 1267, and resistance at 1300 has also held strong. Apprehension in the market could trigger losses back towards previous trend support at 1267. If this level holds this would improve the outlook on the upside in the longer term. Conversely, if prices take out 1300 and close above this level today this would help confirm the three white soldiers. Friday’s strong close at 1293 gives upside momentum and this could trigger gains towards the 76.4% fib level at 1324.5.

NY 2nd Month Cocoa Futures 

NY cocoa futures held their nerve on Friday after prices failed above 2200 and prices closed at 2169. The stochastics are rising and the MACD diff is positive and diverging suggesting higher prices in the near term. The shooting star candle and failure above 2200 could trigger losses back towards previous trend support. A break of this level could trigger losses towards 2000. On the upside, if prices can gain a footing above 2200 this could trigger gains towards 2276 and trend resistance. A break above this level would suggest an improvement in the market sentiment and suggest a change in trend. In the near term, we expect prices to edge higher as buying pressure has improved.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures tested resistance at 2000 on Friday but this level held firm and the market closed at 1962.66. The stochastics are rising and the MACD diff is also positive suggesting higher prices however the rejection of 2000 on Friday and the shooting star candle suggests lower prices towards 1927. The reaffirmation of resistance on Friday, affirms the trend on the downside but prices need to take out support at 1900 in order to confirm the trend. Conversely, if futures can hold above 2000 and then trend resistance we could see prices target the 40 DMA at 2115. This moving average will continue to close in and provide resistance.

Contents

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