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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 yesterday as buying pressure triggered a test of resistance at 13.80, the market closed at 13.74. The stochastics are rising and the MACD diff is diverging on the upside suggesting we could see higher prices in the near term. To confirm the bullish indicators and three white soldier candle pattern, prices need to break above 13.80 and 14. If futures hold above 14 then this could set the scene for further gains to 14.50. Rejection of resistance at 13.74 could trigger losses back to support at 13.23 but if futures close below 13 this could trigger a sell-off back to 12.20.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher yesterday as intraday trading caused futures to close at 387.70. The stochastics and MACD diff are positive and this suggests higher prices in the near term. However, yesterday’s candle suggests buying pressure is waning and this could trigger a correction to the downside towards the 50% fib level at 367.50. The close above 380 and the positive indicators suggest we could see prices push towards 400 in the medium term.

NY 2nd Month Coffee Futures

NY coffee futures held their nerve yesterday as intraday trading caused prices to test support and resistance. The indicators are rising and the MACD diff is positive and diverging suggesting we could see prices gain further ground towards the 50% fib level at 115. A break here would set the scene for higher prices towards 120 in the medium term, however, apprehension in the market around 115 and the reaffirmation of resistance at this level could strengthen the downtrend in the longer term. A break below 108 would pave the way for lower prices to 104. However, the indicators are positive and the downside tails suggest we could see futures edge higher in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures gained ground yesterday after prices found support at 1250, this triggered a close at 1278 off the high at 1285. The stochastics are falling and the MACD diff is negative but is starting to converge suggesting we could see futures test support 1250 once again, the ADX is rising on the downside suggesting a strengthening trend and this could prompt a break of support at 1250. On the upside, in order to regain conviction prices need to close above the 50% fib level and the 100 DMA. The 10 DMA has crossed below both longer-term moving averages suggesting a negative trend but this is not a proactive signal.

NY 2nd Month Cocoa Futures

NY cocoa futures have rebounded off support at 2400 but failed above the 200 DMA yesterday to close at 2459. The stochastics are oversold and the MACD diff is negative but converging suggesting we could see futures push higher in the near term. Prices need to take out resistance at the 200 DMA and then target the 50% fib level before targeting the firmer level at 2600. Rejection of resistance at the 200 DMA could trigger losses back through 2400 with the recent low at 2355.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures traded a narrow range and failed above 2200 to close at 2198. The stochastics are oversold and the MACD diff is negative outlining the recent trend. The rejection of prices at 2200 could set the scene for lower prices towards to 2160 before targeting 2100. Selling pressure has been robust and we expect a continuation of this trend in the near term but in order to improve the outlook on the upside, futures need to gain a foothold above 2200 and then target 2282 in the medium term.

Contents

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