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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 were supported yesterday as appetite for prices at 13.15, prompting a close at 13.39. The market remains below the 10 DMA at 13.47 and the indicators are weakening suggesting lower prices. The stochastics are falling towards oversold but the %K stochastic has flattened and this could trigger losses towards the 40 DMA at 12.96 before 12.35. The MACD diff is negative but the RSI is rising. In order to regain upside momentum, prices need to break back above previous trend support and then robust resistance at 13.81. A break of 13.81 would help confirm the ascending triangle and the recent trend. Dips remain well bid keeping the trend intact but the market needs to breakthrough 14.

Ldn 2nd Month Sugar Futures

London sugar futures gained ground yesterday as intraday trading saw prices supported at the 40 DMA and prompted a close back above the 50% fib level at 367.50. The stochastics are falling towards oversold with the %K stochastic is oversold, the MACD diff is negative and diverging on the downside suggesting lower prices. Support at 40 DMA and the close above the 50% fib level could trigger gains back through the 10 DMA to 383.43. The trend remains intact but the market needs to take out the recent high in order to confirm the outlook of higher prices. On the downside, if prices struggle above the 50% fib level we could see the market break below the 40DMA, bringing trend support into play, before the tertiary level at the 100 DMA.

NY 2nd Month Coffee Futures 

NY coffee prices consolidated yesterday after prices were well supported below 120 and recovered to close at 122.35. The stochastics are rising but the MACD diff lacks conviction but the downside tail yesterday and hammer candle suggests we could see prices gain ground in the near term back towards 125. In order to regain upside momentum prices need to break the band of resistance at 127-130. Conversely, on the downside, the upside tails suggest lack of appetite for higher prices. Rejection of prices above 125 could trigger losses back to 115. The 40 DMA suggests higher prices in the near term, as does the hammer candle but prices need to gain a footing above 125 in order to confirm the outlook.

Ldn 2nd Month Coffee Futures 

Ldn coffee prices buckled yesterday as selling pressure prompted a test of support at 1391 and a close at 1405, back above trend support. The stochastics continue to trend higher but the %K stochastic looks set to break below the %D which is a sell signal. The MACD diff lack conviction and the RSI is falling. A break below the 76.4% at 1391 could trigger losses towards 1350 where the market has been well supported. Prices have recorded a new recent high but the stochastics have not posted a new high. This failed to confirm the outlook on the upside. However, if prices hold above 1390 we could see another challenge of 1450 in the near term.

NY 2nd Month Cocoa Futures 

NY cocoa prices were bid yesterday as intraday trading prompted a test of 2477, the market closed below this level at 2539. The stochastics are rising back towards overbought. The MACD diff is negative and converging suggesting higher prices, this could trigger a challenge of 2589 with 2700 the next psychological target on the upside. This would also help to confirm the hammer candle. On the downside, apprehension by traders as prices approach 2600 could trigger losses back towards to the 200 DMA, the market needs to take out this level in order to confirm the outlook of lower prices towards the 40DMA at 2330.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa prices reversed the previous day’s action as prices were well supported at 2200 and closed at 2267. The stochastics are rising with the %K in overbought, the MACD diff is positive and diverging suggesting higher prices through 2300. Secondary support stands at 2320, the before 2400. On the downside, the tails into the resistance at 2300 show lack of appetite for higher prices. In order to confirm the outlook of lower prices, futures need to take out the 200 DMA and then target the 40 DMA at 2108. The trend in the near term favours the upside and we anticipate strength in the near term.

Contents

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