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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 

Prices rejected 14 once again, and this prompted the market to break below support at 13.79 and close at 13.67. The MACD diff is converging and this could trigger a losses back towards 13.45, with secondary support at 13. A break below 13 would set the scene for a change of trend towards 12. To confirm the bullish engulfing candle, and doji, prices need to take out 14 and then hold abvoe the recent high at 14.15. This could set the scene for higher prices in the longer term and confirm the upward trend. Recent activity has seen a period of consolidation between 13.20-14 and we expect this to remain the case. 

Ldn 2nd Month Sugar Futures 

Sugar futures edged lower yesterday after once again failing abvoe 403. The market closed at 3987.70. The stochastic are falling but are still positive, the MACD diff is negative and we this could trigger losses back towards previous trend support. The 40 DMA is starting to close in and this will provide support in the medium term but a break here could set the scene for a change in trend to 380 and 370. This would help confirm the double top at 403. On the upside, if futures can gain  footing abvoe 403 we could see futures edge towards 420 in the medium term, this would confirm the bullish candle. 

NY 2nd Month Coffee Futures 

NY coffee futures were well supported in the AM but rejected 108.55 and this prompted a close at 106.05. The stochastics are falling and the MACD diff is neutral, the rejection of resistance suggests we could see futures decline in the near term, towards 104. A break of this level would help confirm the shooting star candle, robust support at 100 is a key level. On the upside, futures need to break 108.55 and then target 110 om order to regain upside conviction. The key level in the medium term is 115 and if futures take out this level we expect further gains. Near term momentum favours the downside and this could prompt a challenge of 104. 

Ldn 2nd Month Coffee Futures 

Ldn coffee futures have edged lower yesterday as intrady trading caused futures to reject 1350 and a close at 1327. The stochastics are falling out of overbought, the MACD diff is positive but converges suggesting waning buying pressure. The rejection of prices above 1350 could set the scene for a decline towards 1317, secondary support stands at 1300. This would confirm a rejection of the ascending triangle. On the upsdie, if support around the 40 DMA and the 100 DMA could set the scene for break of resistance at 1353. Secondary resistance stands at 1391. Near term momentum suggests we could see futures decline towards 1300, to confirm the long term trend futures need to reject 1350 and then break support at 1250.

NY 2nd Month Cocoa Futures 

NY cocoa futures gained ground yesterday as intraday trading as prices break above the 23.6% fib level to close at 2308. The stochastics are falling and the gap between them suggests strong momentum on the downside. The MACD diff is negative and diverging suggesting lower prices in the near term towards 2200. Selling pressure has been strong recently and despite yesterday's gains, the trend is on the downside. A rejection of prices above 2300 may trigger losses back to 2200. On the upside, yesterday's candle was full and this set the scene for a test of resistance at 2355. 

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures gained ground yesterday as intrady trading saw futures test resistance at 2100 and close at 2095. The stochastics are falling into oversold and this suggests lower prices in the near term. The MACD diff is negative and if futures rejection 2100 this could trigger losses back towards 2000. This would help confirm the reaffirmation of resistance and strong selling pressure. The market was well supported below 2000 in recent months, and this could remain the case. On the upside, if futures close abvoe 2100 and hold above this level, this would prompt futures to target 2168. If futures hold abvoe 2168 this would prompt futures to regain upside conviction. However, long term momentum is on the downside and we expect this to remain the case. 

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A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

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