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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 edged higher yesterday as intraday trading saw prices test the 100 DMA support, at 13.54. The market closed at 13.63. The RSI is rising, and %K/%D are negative and diverging, entering the oversold territory. The MACD diff is negative and diverging, suggesting growing selling pressure. The indicators point to lower prices in the near term and confirm the rejection of the support; prices need to take out 13.54. A break below this level towards 13.28 would confirm the strong bearish momentum. Conversely, appetite for prices above the 76.4% fib level at 13.79 could trigger a test of trend resistance, with secondary resistance standing at 10 DMA at 13.87. A doji candle after the three black crows formation signals uncertainty about the outlook for lower prices and futures need to take out the 10 DMA to confirm the outlook for falling prices.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures were supported at 385, prompting a close at 388. The stochastics are falling and are oversold, and the MACD diff is negative and diverging, suggesting lower prices in the near term. The RSI is rising, and the support around the previous day’s lows confirms market uncertainty. In order to confirm the outlook for higher prices, futures need to hold above 391 and then challenge the 10 DMA at 393. Yesterday’s buying pressure was subdued, but the highs were seen in line the resistance level, suggesting an appetite for prices above 390. On the downside, a break below the 61.8% fib level at 383 could set the scene for a test of the 100 DMA at 382. Near-term momentum is on the downside, and we anticipate prices to deteriorate.

NY 2nd Month Coffee Futures

NY coffee futures edged lower yesterday as intraday trading to fail into 125.75 before closing at 124.65. The stochastics are rising as the MACD diff is positive and diverging, suggesting we could see a break of resistance level in the near term. Buying pressure waned yesterday, but the indicators are still positive, the bulls need to break above 125 in order to reaffirm upside conviction. On the downside, if selling pressure continues into today, this could prompt a test of 38.2% fib level at 121.50. A break below this level would bring into play a test of 10 DMA at 120.56. We expect futures to push higher in the near term but remain below the key resistance at 130.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures edged higher yesterday after prices failed above 1378 and closed at 1372. The stochastics are rising, and the MACD diff is negative and converging, suggesting we could see a change in momentum in the near term. On the downside, futures need to break below the support of 40 and 100 DMA order to confirm the outlook of lower prices. Indeed, the 40 and 100 DMAs have closed in, with the short-term DMA breaking above the longer-term,  and we expect this to provide robust support in the near term. The reaffirmation of support at 1378 could set the scene for higher prices back to 1400. Three white soldiers formation in the previous sessions confirms the outlook or higher prices; however, yesterday’s doji candle points to market uncertainty. The market needs to gain a footing above the previous day’s highs in the immediate term to improve the outlook as yesterday’s repeated failure above 1378 suggests a lack of appetite for prices at this level.

NY 2nd Month Cocoa Futures

NY cocoa futures sold off yesterday after investors rejected prices above 2615, prompting a close below 10 DMA at 2602 respectively, at 2541. The stochastics are falling, with RSIs in neutral territory; the %K/%D converged on the downside and entered the oversold territory, suggesting a short-term negative trend. The MACD diff is negative and diverging, indicating improving sentiment on the downside. To confirm another bearish candle and form the three black crows formation, prices need to break below the support level at 2523 before the 40 DMA level at 2512. On the upside, to regain upside conviction, futures need to close back above 10 DMA at 2602 and then 2612 in the near term. Near term momentum is on the downside, the close below the shorter-term DMA confirms this trend.

Ldn 2nd Month Cocoa Futures

Lnd cocoa futures sold off yesterday as protracted selling pressure prompted a break of support at 2279 to close on the back foot at 2244. The stochastics are falling crossing into the oversold territory, and the MACD diff is negative and diverging, suggesting lower prices in the near term. The break of the key support levels 40 and 100 DMA at 2269 and 2255 respectively suggests an appetite for lower prices. Primary and secondary support stands at 2186 and 2147 respectively. If prices find support at 2279, this could prompt a recovery back above the 100 DMA. In the medium term, we could see futures break above the 10 DMA at 2329. This level has provided strong resistance in recent weeks, and a close above this level would prompt prices to regain upside conviction. We anticipate prices to retreat in the near term.

Contents

Disclaimer

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