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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 sold off on Friday as selling pressure caused prices to give back some of the previous day’s gains and close at 13.25. The indicators are starting to suggest we could correct to the downside in the near term. The RSI, and stochastics are converging and the MACD diff is positive but losing impetus. Selling pressure on Friday could pave the way for a test of 13 in the near term, if prices hold this level this may strengthen the outlook on the upside. The rally since April has seen dips well bought, appetite for prices below 13 and around trend support could prompt a test of 13.81. A breach of this level and subsequent gains through 14 would confirm the outlook of higher prices and the ascending triangle.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures mirrored NY and buckled on Friday as lack of appetite for prices at 380 triggered prices to close at 372.20. The stochastics are starting to top out as the MACD diff is positive and diverging but the RSI is also falling. The rejection of prices at 380 has formed a double top and to confirm the pattern, prices need to break the 50% fib level and then previous trend resistance in order to confirm the outlook of lower prices towards the recent low at 334. Alternatively, if support at previous trend resistance holds firm, this would indicate higher prices. Appetite for prices around the 50% fib level could trigger gains though 380 showing a rejection of the double top.

NY 2nd Month Coffee Futures 

NY coffee futures softened on Friday as traders rejected prices above 120 prompting a close at 117.90. The stochastics are falling and the MACD diff is converging on the upside, the ADX is rising outlining the recent rally but the rejection of the 130 and the shooting star candle suggests we could see lower prices in the near term. A break of support at 115 could trigger losses to 110, where previous trend resistance stands. If this level holds firm, we could see prices trend higher back towards 120 in the longer term. If prices are well supported at 115 and this could prompt a challenge of 121.50. We expect prices to retreat in the near term.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures consolidated on Friday and posted an inside day. The market struggled above 1370 and closed at 1363. The stochastics are falling towards neutral territory, the MACD diff is now negative suggesting lower prices in the near term. The RSI is still positive reflecting the recent rally. The market has consolidated above 1331 in recent weeks and this could trigger gains in the near term back towards 1400. The inside suggests a continuation of the recent trend. The upside tails suggest rejection of higher prices and this could trigger losses through 1331 and then target 1280 in the near term. The weakening indicators suggest we could see lower prices but activity is holding above key support.

NY 2nd Month Cocoa Futures 

NY cocoa futures edged higher on Friday as intraday trading saw prices supported at the 200DMA at 2468, prompting a test of close at 2523. The stochastics are rising and are overbought and the MACD diff is positive and diverging, the ADX and RSI are also positive. The indicators are rising and the close above the 200 DMA in the near term could trigger gains towards 2600. The shooting star candle and the hammer indicate uneasiness in the near term. Lack of appetite for prices above the 200DMA could trigger a retracement toward 2400 and this could trigger losses back to previous trend resistance. We expect prices to edge higher on the upside in the near term but momentum is starting to wane.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures gained ground on Friday as buying pressure prompted a close at 2236. The stochastics are rising further into overbought territory and the MACD diff is also positive and diverging suggesting higher prices in the near term towards 2300. The ADX and DMI are positive and this indicates the trend is strong. We expect futures to edge higher in the near term as buying pressure persists. The recent rally has been strong and the full candle on Friday suggests higher prices. On the downside, lack of appetite for prices around 2250 could trigger a retracement back towards the 200 DMA. A breach of this level may prompt a sell off back towards 2100.

Contents

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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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