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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 well supported yesterday as support at the 40 DMA, the market closed at 13.41.  The stochastics are rising towards the overbought territory and the MACD diff is also positive and diverging suggesting we could see prices gain further ground on the upside. The reversal of the previous day's activity and positive indicators may set the scene for higher prices towards 13.80 in the near term. On the downside, lack of appetite for higher prices could trigger losses through the 40 DMA and then target 12.70. We expect prices to trend higher in the near term.

Ldn 2nd month Sugar Futures 

Ldn sugar futures were supported at the 50% fib level yesterday, triggering a close on the front foot at 372.50. The stochastics are rising towards overbought but the gap between them suggests momentum is on the upside. The MACD diff is positive and diverging suggesting higher prices in the near term. Appetite for prices below the 50% fib level could trigger gains back towards 380. Yesterday's candle suggests higher prices but futures need to take out robust resistance at 383.43 in order to confirm the trend. On the downside, a rejection of prices above the 50% fib level may prompt futures to break back towards 359.80. 

NY 2nd Month Coffee Futures 

NY coffee futures sold off yesterday after futures failed above the 50% fib level, prompting a close on the back foot at 112.45. The stochastics are falling back towards the oversold territory, and the MACD diff is also diverging on the downside, outlining the weakness in the market. Selling pressure has been strong and yesterday's close on the low suggests lower prices towards 110. This support level has been robust and we expect this level to remain to hold. Alternatively, if prices can gain a footing above the 50% fib level, the bulls could then target 120 in order to regain upside conviction. We anticipate prices to remain on the back foot in the near term. 

Ldn 2nd Month Coffee Futures 

Ldn coffee futures edged lower yesterday after futures failed above 1350. prompting a close at 1341. The stochastics are falling towards oversold, and the MACD diff is positive and diverging suggesting lower prices in the near term. To confirm the bearish indicators and rejection of prices above 1350, futures need to take out support at 1335 and then target 1330. On the upside, futures need to close above 1350 and then target 1390 in order to confirm the outlook of higher prices towards 1425. We expect futures to weaken in the near term back towards 1300.

NY 2nd Month Cocoa Futures

NY cocoa futures sold off yesterday as protracted selling pressure caused futures to close on the back foot at 2541. The stochastics are falling and the MACD diff is negative and diverging suggesting lower prices in the near term. The bearish engulfing candle, in conjunction with negative indicators, suggests we could see prices weaken back through the 40 DMA at 2464 before targeting 2464. On the upside, immediate support stands at 2517 and if the market holds trend support, we could see futures target 2600. The reaffirmation of trend support may set the scene for a test of resistance at 2694 in the long run. A subsequent break of this level would confirm the outlook of higher prices. We do, however, anticipate momentum to remain on the back foot. 

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures sold off yesterday on Friday as protracted selling pressure caused the market to close at 2294 below key support at 2300. The stochastics are declining further into oversold territory, as the MACD diff is negative and diverging. We expect to see prices decline in the near term through 40DMA at 2265. Secondary support stands at 2200 and if prices take out this level, this would confirm the rejection of the inverse head and shoulder pattern. The reaffirmation of trend support may set the scene for higher prices but we expect the market to soften in the neat term. 

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