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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 bounced higher yesterday as buying pressure prompted a close back above the 23.6% fib level at 12.69, at 12.71. The stochastics are oversold as the DMI and ADX suggest downside pressure. the MACD diff is negative but after yesterday has started to converge. The close above the 23.6% fib level could trigger gains towards 13.05 in the near term. The buy signal from the stochastics strengthens the outlook on the upside. The key level on the upside remains 13.77 and a close above 13.05 would help to confirm the outlook of higher prices to 13.77. On the downside, rejection of prices above 12.70 may set the scene for lower prices through 12.35 towards 12.13 where the 40 DMA stands. 

Ldn 2nd Month Sugar Futures 

Ldn Sugar futures gained ground yesterday as prices broke above the 38.2% fib level at 351.57 before closing at 353.90. The stochastics are oversold and the MACD diff is negative and converging on the downside suggesting we could see prices break immediate trend resistance. A break of this level could prompt a test of the 40 DMA at 365.47. On the downside, rejection of prices at the 100 DMA may trigger a reversal of previous day's trading and break below the 346.90. A breach of this level would confirm the descending triangle pattern which may pave the way for lower prices to 334.80. 

NY 2nd Month Coffee Futures  

NY coffee futures edged lower yesterday after prices recovered from heavy selling pressure. The market closed at 121.80 above the 38.2% fib levels. The stochastics are falling and have given a sell signal and the MACD diff is also negative and diverging suggesting lower prices in the near term. However, the recovery yesterday and appetite for prices at the 50% fib level going from the June low to September high suggests a strong appetite for lower prices. The bulls need to push back towards 125 and close above this level in order to confirm the outlook of higher prices. Selling pressure strong and the bearish engulfing candle and hanging man outline this. However, the strong recovery yesterday could mean prices edge higher today. 

Ldn 2nd Month Coffee Futures 

Ldn coffee market gained ground on Friday as intraday trading saw prices test support and resistance. The market closed at 1391. The stochastics are falling towards oversold and the MACD diff is negative and diverging on the downside suggesting lower prices. The rejection of prices above 1400 and the bearish engulfing candle suggests we could see futures test 1350 before previous robust support at 1335. On the upside, if futures can gain a footing above 1400 we could see futures re-target the 10 DMA at 1421. Yesterday's candle suggests uncertainty in the market and we expect futures to edge lower in the near term. 

NY 2nd Month Cocoa Futures

NY cocoa futures surged higher yesterday as intraday trading cause prices to break resistance at 2600 and then closed at 2694. The stochastics are rising and have given a buy signal and the MACD diff is negative but is converging, outlining the improved outlook on the upside. The bullish engulfing and full candle yesterday suggests we could see prices push higher through immediate resistance at 2694 before targeting 2800 in the medium term. On the downside, a rejection of this level could trigger some of yesterday's gains to be given back. However, in order to suggest a change in trend, prices need to close below 2523 and then the 200 DMA at 2465. Momentum favours the upside and we expect this to remain the case in the near term. 

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures were well bid yesterday as intraday trading caused prices to break above resistance at 2400 to close at 2447. The stochastics are neutral and the MACD diff is negative but also lacks conviction despite yesterday's candle. Immediate resistance stands at 2450 and a double top has been formed at this level. To help confirm the pattern, prices need to retreat from this level and close back below 2400 in the immediate term. The 40 DMA has crossed above the 100 DMA which is traditionally bullish but can be reactionary. The bullish engulfing candle and full candle suggests higher prices in the near term. 

Contents

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