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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 Future

NY sugar futures edged lower yesterday as selling pressure prompted a close at 12.46. The stochastics are rising and are positive, the MACD diff is negative but lacks conviction. Activity remains above key support but if futures break this level and then trend support, futures could trigger losses through 12 to 11.37 where the 100 DMA. On the upside, appetite for prices at 12.35 could trigger gains back towards 13, this remains the key level on the upside. The near term trend is on the upside and the reaffirmation of support suggests we could see higher prices but prices need to post a new high, while the indicators post a new high as well.

Ldn 2nd Month Sugar Future

Ldn sugar futures consolidated yesterday as prices traded within resistance and support forming a spinning top, and closed at 353.50. The stochastics are rising, and the RSI is also in positive territory. The MACD diff is positive and diverging on the upside suggesting we could see higher prices in the near term. Futures need to break above resistance at the 40 DMA and trend resistance in order to confirm the improvement in the upside. On the downside, rejection of resistance could trigger losses back through the 38.2% fib level, this could set the scene for another challenge of 331.86. A break of this level would help confirm the descending triangle.

NY 2nd Month Coffee Future

NY coffee futures held their nerves yesterday as intraday trading saw prices test support and resistance, forming a long-legged doji. The market closed at 110.30. The stochastics are rising and moving towards overbought territory as the MACD diff and diverging on the upside, the DMI is also rising. The gap higher and large candle outline bullish momentum, however, prices need to take out-trend resistance in order to confirm the outlook of higher prices towards 115. The doji suggests uncertainty in the market and futures may retreat back towards the 100 DMA at 107.50. In order to suggest a change in trend back towards the downside, in the near term, prices need to close the gap.

Ldn 2nd Month Coffee Future

Ldn coffee futures closed yesterday as selling pressure prompted prices to close at 1350. The indicators are on the upside, as the stochastics are overbought, and the MACD diff is positive and diverging suggesting higher prices. The ADX and DMI outline the strengthening trend on the upside. Prices failed above 1350 yesterday and if selling pressure continues today, we may see prices take out support at 1331. Secondary support stands at 1300. On the upside, buying pressure has been strongly outlined by the full candles. Appetite for prices below 1350 could trigger gains back through 1350 and then target 1400 in the medium term. The market has moved quickly and we would like to see prices reaffirm support in the near term in order to confirm the trend.

NY 2nd Month Cocoa Future

NY cocoa futures consolidated yesterday as intraday trading, caused prices to test support and resistance but close at 2201, near unchanged. The stochastics are rising and the MACD diff is diverging on the upside suggesting higher prices. The RSI lacks conviction, outlining the recent consolidation, the stochastics have started to converge and if futures fail to gain a footing above 2200 we could see futures break back below 2165 and then target 2090. On the upside, futures need to take out the 40 DMA and trend resistance in order to confirm the outlook of higher prices towards 2400.

Ldn 2nd Month Cocoa Future

Ldn cocoa failed into trend resistance yesterday prompting prices to close at 1981, slightly below the open. The stochastics are rising but have started to converge, the MACD diff is positive and diverges but the rejection of trend resistance yesterday and earlier this week suggests lack of appetite for higher prices. A retracement through support at 1927 would confirm the descending triangle and could trigger losses towards 1850. Conversely, prices need to take out-trend resistance and then challenge the 40 DMA in order to regain upside conviction. The recent trend is on the downside and the reaffirmation of resistance strengthens the trend on the downside.

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