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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 Friday as buying pressure triggered a close on the front foot at 13.51. The stochastics are rising with the %K stochastic overbought, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards 13.80, but the market needs to take out immediate resistance at 13.60, before 13.80. On the downside, a band of resistance around 13.60-13.80, and if this level holds firm we could see prices retreat back through the 40DMA at 13.00 before 12.35.  The 10 DMA is about to cross above the 40 DMA which can be bullish, futures need to take out 13.77 in order to confirm the outlook on the upside.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures edged higher on Friday and managed to close on previous resistance at 376.50. The indicators suggest we could see higher prices in the near term. The stochastics are rising and are overbought and the MACD diff is positive and diverging on the upside. The RSI is rising and we expect futures to edge higher in the near term towards 380 with the 61.8% fib level at 383.43, the robust level on the upside.  Superseding this level resistance stands at 394.20. On the downside, if futures fail into 377 then we could see futures break back below the 50% fib level at 367.50 before the 100 DMA at 358.60. We expect futures to firm in the near term back towards 380.

NY 2nd Month Coffee Futures 

NY coffee futures gained ground on Friday after prices were supported at 112.60 to lose at 115.20, back above the 50% fib level. The stochastics are converging and we could see a buy signal on the horizon, the MACD diff is negative and starting to converge suggesting futures may improve on the upside towards robust resistance at 120. The 10 DMA is falling and is expected to provide resistance today, lack of appetite for prices above the 50% fib level could trigger losses back to 110.25. We expect to see futures gain ground in the near term back towards 120 after Friday's close and support between 110-112. 

Ldn 2nd Month Coffee Futures 

Ldn coffee futures edged higher on Friday after prices failed into support and resistance. The market closed at 1376. The stochastics are rising and the MACD diff is converging on the downside and we could see futures push higher in the near term. In order to regain upside conviction, futures need to break back above the 40 DMA at 1390 and the 76.4% fib level at 1391.68. Secondary resistance stands at 1420. On the downside, another rejection of 1390 and breach of support at 1350 and then the secondary level at 1337. Friday's candle suggests uncertainty and this could trigger prices consolidate in the near term. 

NY 2nd Month Cocoa Futures 

NY cocoa futures sold off on Friday after rejecting resistance at 2600. The market closed at 2545. The stochastics are falling towards oversold and the MACD diff is negative and diverging suggesting we could see lower prices in the near term through support at 2523. The 40 DMA at 2529 is also robust support and a break here would bring into play the 200 DMA at 2464. On the upside, futures need to gain back above 2600 in order to confirm upside momentum. The reaffirmation of support could trigger gains towards the double top at 2694, this could strengthen the trend in the long run on the upside. 

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged lower on Friday as prices failed into the 10 DMA and then broke below support at 2300. Appetite for prices below this level triggered a close at 2303. The indicators are starting to favour the downside, the stochastics are falling and the MACD diff is negative and diverging on the downside. A break below the 40 DMA would bring into play the 100 DMA. Prices have been relatively well supported below 2300 and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above the 10 DMA and then target 2400 in the near term. 

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