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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 have sold off in recent sessions, the break of the 40 DMA triggered a test of 12.55. The market closed at 12.61 on Friday. The indicators are weak and suggest lower prices in the near term. The stochastics are oversold and the falling as the MACD diff is negative and diverging suggesting lower prices in the near term towards 12.35. Secondary support stands at 12 where the 37.2% fib level stands, with tertiary support at 11.50. Thursday's selling pressure was robust and to confirm the candle futures need to close at 12. On the upside, support around 12.50 could trigger prices to push back towards 13 where the 40 DMA stands. In order to regain upside conviction, prices need to break 13.80 in the longer time. NY is closed today due to Labor Day. 

LDN 2nd Month Sugar Futures 

Ldn sugar sold off on Friday as selling pressure caused a test of support at the 40DMA. The stochastics are falling towards oversold and the MACD diff is negative and diverging suggesting lower prices in the near term. To confirm the outlook in the near term, prices need to break the 38.2% fib level at 351.57. Secondary support stands at previous trend support around 340. A breach of support at 350 would help to confirm the break of trend support. Support at the 100 DMA could set the scene for a move back above the 40 DMA and then target the recent high at 382. 

NY 2nd Month Coffee Futures 

NY coffee futures gained ground on Friday as buying pressure prompted at a test of appetite above 134.30 and reached a high at 135.45. The market closed at 134. The stochastics are rising further into overbought and MACD diff is positive and diverging suggesting higher prices. The DMI and ADX outline the recent trend on the upside.  The rejection of prices above 135 could trigger lower prices in the near term towards 130, with the 10 DMA at 127.08 and is rising which could provide support in the near term. The next key level on the downside is 125 before the 121.50. On the upside, if prices can gain a footing above 135, the next key level on the upside is 140.  The recent trend has been strong and may benefit from a correction to the downside to reaffirm support. NY is closed today due to Labor Day. 

Ldn 2nd Month Coffee Futures  

Ldn coffee futures failed above 1460 on Friday and the market closed at 1444. The stochastics have plateaued and the MACD diff lacks conviction suggesting we could see upside momentum continue to struggle. To confirm the shooting star candle, prices need to break below trend support and then target 1400. This level of support has held firm in previous weeks, a subsequent break of this level could trigger losses back to 1357. On the upside, futures need to close back above 1450 and then 1480 in order to confirm the ascending triangle. The recent upward trend is steep but the indicators are lacking conviction and the shooting star candle both suggest lower prices in the near term. 

NY 2nd Month Cocoa Futures 

NY cocoa sold off on Friday as selling pressure caused futures to close just above key support at 2589 at 2595. The stochastics are converging and we could see a sell signal which would strengthen downside momentum, the MACD diff is converging on the upside which also suggests lower prices in the near term. A break of support at 2589 could bring into play previous support at 2500, with the tertiary level at 2466. On the upside, if support at 2585 holds firm we could see prices re-test 2708. Superseding this level, the market could trigger gains towards 2800.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa consolidated on Friday as intraday trading caused futures test appetite above 2400 and then closed at 2378. The stochastics have converged and are on the cusp of giving a sell signal, the MACD diff is converging suggesting lower prices in the near term. The shooting star candles suggest a lack of appetite for prices above 2400. The rejection of prices above 2400 may set the scene for lower prices towards 2300, before 2270. On the upside, futures need to close above 2400 before 2450 in order to confirm the outlook of higher prices. We anticipate the market to soften in the near term as upside momentum has faded. 

Contents

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