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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 have rallied in recent sessions as buying pressure prompted a break of resistance at 14.52, prompting a close for 2020 at 14.68. The indicators outline the recent strength in the market, the stochastics are overbought and the gap between them indicate strength in the market. The ADX is starting to rise as the DMI is on the upside, the MACD diff is positive and the diverges which suggests higher prices in the near term. The appetite for prices below 14.50 and strong close could set the scene for higher prices in the near term towards 15, with the 100% fib level at 15.20. The long term trend is on the upside after dips have been well bid, however, we could see apprehension in the market as prices approach 15. To confirm the outlook on the upside, the market needs to take out the 100% fib level and post new highs from the stochastics in strong volumes. On the downside, lack of appetite for prices above 14.55 could trigger a correction back to 14.30 before 14. We expect momentum to remain on the upside in the near term.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures edged higher on Thursday as intraday trading saw prices supported below 410, this triggered a close on the front foot at 412.20. The stochastics are rising into overbought and the MACD diff is diverging on the upside. The RSI is rising and nearly overbought and we expect momentum to continue on the upside after breaking through 409.70. To confirm the three white soldiers, prices need to break towards 420, a breach of this level would confirm the indicators and long term trend. On the downside, lack of appetite for prices above 410 could set the scene for lower prices back towards 400 in the near term. The market has failed into 410 in recent months, prompting a correction back through 400 before the December low at 385. We expect futures to remain on the front foot in the coming sessions with an upside target of 420 for the bulls.

NY 2nd Month Coffee Futures 

NY coffee futures gained ground on Thursday as intraday trading caused futures to break resistance at 130, and closed at 130.15. The stochastics are rising in overbought, and the MACD diff is positive and starting to diverge, suggesting we could see higher prices in the near term. The bullish candle and strong close could set the scene for higher prices in the near term towards 132 before last years high at 135. The bullish candle, and downside tails below 125 suggest higher prices in the near term. On the downside, future have struggled above the 23.6% fib level at 129.50 in recent weeks. This could trigger losses back towards 125 before the longer term support level at 120. The moving averages are rising and expect these to provide support for the market in the medium term. The indicators and Thursday’s bullish candle suggest we could see higher prices in the near term towards 133.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures gained ground on Thursday but prices remained rangebound, and closed at 1386. The stochastics are starting to rise and the MACD diff is positive and diverging but prices need to break above near term resistance at 1391.70 in order to confirm the outlook of higher prices towards 1425. The RSI is rising and if support at the 40 DMA holds firm this would pave the way for a test of resistance around 1437. The market has been well bid at trend support, a symmetrical triangle has been formed but to confirm this pattern, futures need to break 1437 and then 1479. In the near term, an ascending triangle has been formed and a breach of 1391 would improve the outlook on the upside. Conversely, on the downside rejection at 1391 could trigger losses back to 1364 before the more robust level at 1331. Recent consolidation suggests a lack of appetite for higher price but prices need to break resistance at 1391 in order to suggest higher prices.

NY 2nd Month Cocoa Futures 

NY cocoa futures consolidated the previous day’s gains in Thursday after prices found support below 2500. The market closed at 2535. The stochastics are rising and the gap between them suggests gaining momentum. The MACD diff is converging on the downside and to confirm the bullish engulfing candle, futures need to break above the 40 DMA and then test 2600 in the medium term. This would help to confirm the reaffirmation of support at 2400 in December but futures need to take out 2600 to confirm an improvement in market sentiment. On the downside, lack of appetite for prices at the 40 DMA could trigger losses back to 2400, with trend support at 2320. We expect prices to edge higher in the near term towards 2600.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa prices held their nerve on Thursday as prices were well supported around the 100 DMA. The stochastics are rising sharply and this could set the scene for higher prices in the near term. The gap between the stochastics suggests momentum is rising on the upside, the MACD diff is negative but is starting to converge, but futures need to take out previous trend resistance at 2334, secondary resistance stands at 2400 before 2450. A break above 2334 would confirm the bullish engulfing candle. On the downside, rejection of prices above 2300 could prompt some of the recent gains to be given back. The reaffirmation of resistance at 2300 could strengthen the correction to the downside but futures need to take out the recent low at 2188. We anticipate prices to push higher in the near term.

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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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