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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 surged higher yesterday, breaching July 2017 highs, as intraday trading cause prices to break above resistance at 15.50 and then closed at 15.72. The stochastics are rising and are in the overbought area, and %K/%D converged on the upside, suggesting even further buying pressure. The MACD diff is positive and diverging, outlining a strong bullish candle. The RSI is also in the overbought territory, suggesting we could see a change in trend in the near term. We expect futures to remain supported above previous resistance. The reaffirmation of support at 15.50 could trigger another day of strong days could see futures test the trend resistance of 15.90, the robust level on the upside. On the downside, if futures break through support 15.50, then we could see futures test 15.34 before the 15.29. We expect futures to soften slightly in the near term; however, remain elevated.

Ldn 2nd Month Sugar Futures

Ldn sugar futures rallied yesterday, reaching multi-year highs, and managed to close above previous resistance of 435 at 446.30. The stochastics are rising into the overbought, and the MACD diff is positive and diverging, prompting further buying pressure. We expect futures to remain supported in the near term, we could test near term resistance at 450, before the secondary level at 50.0% fib level at 460.90 if buying pressure persists. On the downside, if futures fail into 440, then we could see futures break back below the 425 before the 10 DMA support of 424. We expect futures to remain elevated in the near term.

NY 2nd Month Coffee Futures

NY coffee futures gained ground yesterday as buying pressure triggered a close on the front foot at 129.40. The stochastics are rising with the %K/%D sending a buy signal, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards 131, before testing the 132.70 level. We have seen traders reject prices at this level in recent weeks, but a close above 133 would help confirm bullish momentum and the ascending triangle. On the downside, the candle found support at 76.4% fib level at 125.80, and if the prices break through this level, we could see prices retreat back through the 125 before 40 DMA at 123.28. The three white soldier formation is a bullish signal, but futures need to take out recent sessions’ highs in order to confirm the outlook on the upside.

Ldn 2nd Month Coffee Futures

Lnd coffee softened yesterday as protracted selling pressure prompted a close below the 61.8% fib level of 1337 at 1332. The stochastics are rising out of oversold, with the %K/%D converged on the upside, suggesting further momentum on the upside. The MACD diff is negative and is converging, suggesting waning selling pressure; the DMI is converging on the upside. The red candle body being within the previous day’s green suggests that there is a lack of appetite above near-term resistance. In order to confirm the outlook for higher prices, futures need to break above 1337 and then take out 10 DMA at 1341 to regain upside momentum. On the downside, the market needs to break below yesterday’s lows of 1304, which could set the scene for a test of 1300. Near term momentum favours the upside, and we expect this to remain the case in the near term.

NY 2nd Month Cocoa Futures

NY cocoa edged higher yesterday as intraday trading caused futures to test appetite at 10 DMA at 2469, the market closed below at 2455. Stochastics are falling, and %K/%D converged on the upside in the oversold territory, confirming a change of trend in the near term. The MACD diff is negative and converging, suggesting waning selling pressure. The DMI and ADX negative outlines the moderate negative trend we have seen in recent weeks, and the indicators converging suggests an end to that trend in the near term. To regain positive momentum, prices need to close above 10 DMA at 2469 and then target 2500, which is the last weeks’ highs. On the downside, the rejection of prices above 2450 could trigger losses back to 2434 before targeting 200DMA at 2420. The break below 2400 would help confirm the descending triangle. Buying pressure remains weak; however, indicators point to an end of the selling pressure, and the doji candle confirms market uncertainty. The reaffirmation of support above 10 DMA could strengthen the outlook of higher prices.

Ldn 2nd Month Cocoa Futures

Prices weakened yesterday as moderate selling pressure triggered a close above 10 DMA level of 2238; the market closed at 2251. The stochastics are rising moderately; and %K/%D has converged on the upside, signalling a potential change in trend. The MACD is positive, however, lacks conviction, and the doji candle formation supports market indecisiveness. Prices have been trading in a narrow range, and in order to confirm the change of momentum, prices need to break above the current resistance at 100 DMA at 2263 and then 2300. Conversely, a break below 10 DMA at 2238 support level could set the scene for a test of 2200. We expect prices to consolidate recent gains today and remain on the front foot.

 

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