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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 buckled on Friday as prices were well supported below 14.17, this triggered a partial recovery and close at 14.27. The indicators are falling, as the RSI, stochastics are falling. The stochastics have given a sell signal but remain in overbought territory, the MACD diff is positive but converging, suggesting lower prices in the near term. Buying pressure has waned and price action is helps to confirm that, in order to confirm the softening indicators, futures need to break below 14 and the 40 DMA in order to regain downside momentum. On the upside, if futures close above 14.60 and this could trigger gains towards 15. The downside tail, and appetite for prices below 14.17 could set the scene for higher prices towards 15.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures consolidated on Friday, prices were well supported at previous trend support, and below 400, prompting a close at 403.30. The stochastics are falling, and have given a sell signal suggesting we could see prices soften in the near term through the 40 DMA at 393.27, and then 61.8% 383.43. The MACD diff is negative, but lacks conviction and in order to confirm downside momentum, futures need to break below the 40 DMA. The key level on the downside is the 100 DMA at 374.88. On the upside, if futures break above resistance at 410, this could trigger gains towards 418 before the more psychological level at 420. The downside tails, and appetite below 400 suggest higher prices in the near term but the market needs to break above key resistance.

NY 2nd Month Coffee Futures 

NY coffee futures sold off sharply on Friday as protracted selling pressure triggered a close on the back foot at 118.05. The stochastics are falling and have given a sell signal, the RSI is also falling. The MACD diff is positive but converges suggesting waning buying pressure, this could set the scene for lower prices towards the 50% fib level at 115. A break below this level would confirm the outlook of lower prices, and the double top at 124.15. 115 was a strong resistance level on the way up and if this support level is reaffirmed, we could strengthen the trend on the upside in the long run. Futures need to take out the recent high at 124.15 and then 125 in order to confirm the outlook of higher prices. We expect prices to gain ground in the near term towards the recent high.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures edged lower on Friday as intraday trading saw futures test support and resistance but close at 1380. The stochastics are falling towards neutral territory as the MACD diff is converging on the upside. This outlines the improving strength of selling pressure in recent sessions. However, Friday’s activity suggests uncertainty in the market. In order to regain upside momentum, and confirm the downside tails, futures need to close back above 1400 and then 1420. The key level on the upside is 1450 and this could trigger gains towards 1480. Conversely, rejection of prices at 1400 could trigger losses back towards 1356. The moving averages are rising and this could provide support in the medium term. Downside tails could trigger gains back above 1400 in the near term.

NY 2nd Month Cocoa Futures 

NY cocoa futures gained ground on Friday and tested resistance at 2736.05, this level held firm and triggered a close at 2712. The stochastics are rising further into overbought territory, and the MACD diff is positive and diverging on the upside suggesting higher prices towards 2800. The ADX, DMI and RSI are all rising and this suggests we could see a continuation of higher prices in the near term. Resistance stands at 2800 with the psychological level in the long run at 2935. On the downside, lack of appetite for prices above 2700 could trigger losses back to support at 2612.97 at 61.8% fib level. A break of this level could trigger losses towards 2500 and 2475. Buying pressure is strong and we expect prices to remain on the front foot in the near term.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures have failed into resistance at 2450, this triggered a close at 2411. The stochastics are rising further into overbought but are starting to converge, as the MACD diff is positive and diverging suggesting higher prices. The ADX and DMI are rising outlining the strength of the recent trend. In order to confirm the outlook of higher prices, futures need to take out resistance at 2450 which has been a robust resistance level in recent months. A break of this level could trigger gains through 2500 would confirm the trend of higher prices. On the downside, if traders reject 2450 this could trigger losses back to 2400 and then 2300. This would confirm the triple top, and pave the way for lower prices to 2180.

Contents

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

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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