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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 found support below the 40 DMA but failed into 13.45 prompting a close at 13.28. The stochastics are softening and the MACD diff is positive and starting to converging on the upside could set the scene for lower prices. The rejection of prices above the 13.45 could trigger losses back to 13, a break of this level may set the scene for prices towards 12.48 where the 100 DMA stands. Prices hold above key support and this could trigger gains towards the key level of 13.80. Futures need to break this level in order to confirm the outlook of higher prices. We expect prices to decline in the near term back towards 13.2nd Month Sugar Futures

LDN 2nd Month Sugar Futures

Ldn sugar futures failed into 380 yesterday and this prompted a close at 375.60. The stochastics are losing momentum and this could trigger a retracement back towards the 50% fib level, a break of this level would set the scene for lower prices to 360 where the 100 DMA. A break here would confirm on the downside would confirm the triple top. The market needs to take out resistance at 380 to confirm the outlook of higher prices, there is a band of resistance between 380 and 383 where prices have failed recently.

NY 2nd Month Coffee Futures

NY coffee futures sold off yesterday as intraday trading caused futures to close on the back foot at 109.20. The stochastics are oversold and this could trigger further losses in the near term through the 61.8% fib level at 108.5. The MACD diff is negative which also adds to downside impetus. Yesterday’s selling pressure prompted a test of support at 108.5 but this level held firm, appetite for prices at this level could trigger back towards the 50% fib level. The bulls need to gain a footing above the 50% fib level in order to regain upside conviction. On the downside, a continuation of selling pressure could trigger losses back towards 104.2 where the 76.4% fib level.

Ldn 2nd Month Coffee Futures

Ldn coffee prices softened yesterday as intraday trading but prices were supported at the 50% fib level and 100 DMA, the market closed at 1315. The MACD diff is negative and diverging on the downside suggesting we could see lower prices in the near term. The stochastics are negative and this has increased downside impetus. The market needs to take out support at the 50% fib level and then 100DMA, this could trigger losses back towards 1250. On the upside, if prices find support at the 50% fib level the market could set the scene for higher prices to 1350. We expect prices to retreat in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower yesterday as intraday trading caused futures to test support at the 200 DMA. Appetite for prices at this level prompted a test of support at 2487. The stochastics are falling further into oversold territory, the MACD diff is negative and diverging suggesting lower prices in the near term. Yesterday’s hanging man candle could set the scene for lower prices to 2400. The downside tail could trigger gains back towards 2523, futures need to gain a footing above this level could trigger gains towards 2600. We expect futures to consolidate around the 200 DMA.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged lower yesterday as selling pressure triggered a close at 2240 after testing support around 2200. The stochastics are falling further into oversold and the MACD diff is negative and diverging suggesting lower prices in the near term. Futures need to close below the 100 DMA to confirm the trend on the downside and the double top at 2450. If support at 2200 holds firm this could trigger  a recovery back to 2300 in the medium term, however near term momentum is on the downside and we expect this to continue.

Contents

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