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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 prices consolidated yesterday as intraday trading caused futures to test resistance at 14.17. The market closed at 14.04. The stochastics are converging and this could trigger gains in the near term. The RSI is rising and the MACD diff is negative and converging which also suggests we could see higher prices. A break of 14.17 would improve upside momentum and this could trigger gains towards the recent high at 14.56. The tertiary level stands at 15. The reaffirmation of support at 13.80 could strengthen the outlook for higher prices but futures need to take out 14.56 and post a new high to confirm the outlook of higher lows and higher highs. On the downside, a break of support of the 40 DMA and then 13.80 would regain downside conviction. To indicate a change in trend, futures need to break below the 100 DMA. 

Ldn 2nd Month Sugar Futures 

Ldn futures edged higher yesterday but prices failed into 400, the market closed at 397.90. The stochastics are about to give a buy signal and prices need break above resistance in order to confirm the outlook of higher prices. The MACD diff is negative and converging indicating and an improved outlook on the upside. Futures need to break above 400 in order to confirm the outlook of higher prices. The key levels are 403 and then 410, breaches of these levels would regain upside conviction and help confirm the higher low, higher high. On the downside, rejection of prices at 400 this could trigger losses to through 389.70 towards the 100 DMA at 379.80. We expect futures to improve in the near term to 403. 

NY 2nd Month Coffee Futures 

NY coffee futures consolidated yesterday after prices tested support and resistance, the market closed at 120.05 and formed a long legged doji. The stochastics are falling and the MACD diff is negative and converging on the upside. The RSI is rising, and futures need to break above 121.50 in order to regain upside momentum. Secondary resistance stands at 124.15 where prices have failed recently. A break above 124.15 would help confirm the reaffirmation of support and the ascending triangle. On the downside, if prices take out support at 118 and then 115 in order to confirm the outlook of lower prices. 115 has held firm in recent weeks and this is a key level on the downside. The downside tails suggest appetite for prices towards 118 and this could keep the market supported today. 

Ldn 2nd Month Coffee Futures 

Ldn coffee futures gained ground yesterday as support for prices at 1350 triggered a close on the front foot at 1368. The stochastics are falling and the MACD diff is negative and diverging on the downside, a break of support at 1350 would bring into play 1331. A subsequent break of this level would prompt the market to regain downside conviction. On the upside, if buying momentum is carried into today, we could see futures take out 1383. The robust level on the upside is 1400, but the long term target is 1450. The reaffirmation of support at the moving averages could improve the outlook in the near term and set the scene for at test of 1383 and 1391.68.

NY 2nd Month Cocoa Futures 

NY cocoa futures were well supported to test resistance at 2712, this level held firm and the market closed at 2651. The stochastics are falling towards neutral territory, the MACD diff has converged on the downside and this could trigger losses back through 2589. Prices need to take out support at 2523 in order to confirm downside momentum in the near term. On the upside, if futures hold above 2600 we could see futures re-challenge 2694. A close above this level would improve upsdie impetus. We expect prices to remain rangebound in the near term but recent activity favours the downside. 

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures failed into key resistance once again yesterday and this caused futures to close at 2400. The stochastics are falling and the gap between them suggests momentum is strong. The MCAD diff is positive and converging outlining the weaker sentiment on the downside. The rejection of prices above 2400 could set  the scene for lower prices towards 2300. This would help to confirm the shooting star candle and rejection of 2500. On the upside, buying pressure remains a threat but prices need to hold above 2400 and then 2445 in order to regain upside momentum. We expect futures to weaken in the near term. 

 

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