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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 gained ground on yesterday as buying pressure caused the market to break above the 40 DMA at 13.08, prompting a close at 13.23. The stochastics are rising, and the gap between the stochastics suggest we could see higher prices in the near term. The MACD diff is converging in negative territory and this strengthens the outlook on the upside. The close above the 40DMA may set the scene for higher prices towards 13.77, which has provided robust resistance in recent months. On the downside, rejection of prices above the 40 DMA may set the scene for lower prices towards 12.70 before targeting the 100 DMA at 12.19. Near term, momentum is on the upside and we expect this to remain the case in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures bounced higher yesterday as protracted buying pressure prompted a break of resistance at the 40 DMA at 365.98. The market failed above the 50% fib level and closed at 368.20. The stochastics are rising and the gap between the stochastics helps to confirm the strengthening outlook on the upside. The MACD diff is converging on the downside but the market needs to gain a footing above the 50% fib level before targeting 380. On the downside, a rejection of prices above the 50% fib level may trigger losses back to the 100 DMA. We expect the market to edge higher today as buying pressure continues.

NY 2nd Month Coffee Futures

NY coffee futures edged lower yesterday as selling pressure continued and the market closed at 118. The indicators suggest lower prices as the stochastics fall and the MACD diff is negative and diverging. We expect futures to soften in the near term and test the 50% fib level at 115.02. Support at this level has been strong in recent sessions and we expect this to remain the case in the near term. On the upside, futures need to close back above 120 in order to regain upside conviction. The tails towards 115 suggest an appetite for prices at this level. We expect the market to consolidate between 115-120 in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged lower yesterday but managed to recover from early selling pressure to close at 1387. The stochastics are falling and the MACD diff is negative and diverging which suggests lower prices in the near term. The downside tails suggest lack of appetite for lower prices, but in order to confirm the outlook of higher prices, futures need to close above 1400 and then target 1450. On the downside, selling pressure is a threat but prices need to take out support at 1350 and then 1331 in order to confirm the outlook of lower prices. Yesterday’s hanging man suggests we could see lower prices in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures failed on the upside yesterday and closed below key resistance at 2600 at 2585. The stochastics are falling and the RSI and the MACD diff both lack conviction. The failure into 2700 and rejection of higher prices could set the scene for lower prices. The double top suggests we could see futures retreat back towards the 200 DMA. To confirm the outlook, prices need to close below this level in order to confirm the outlook of lower prices. On the upside, prices need to close above 2600 before targeting 2700. However, we expect the market to soften in the near term back towards 2485.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged higher on Friday as intraday trading saw prices test 2380, traders rejected this level and we closed at 2335. The stochastics are falling and the MACD diff is negative and diverging, this could trigger losses back through 2300 in the near term. The 40 DMA has closed in and this could provide support in the term, a break of this level would help to confirm the double top at 2450. On the upside, buying pressure remains a threat and to regain upside conviction, prices need to close above 2400. We expect futures to soften in the near term towards 2243.

Contents

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