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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 held their nerve yesterday as intraday trading saw futures test appetite at 15.00. This level held firm and the future closed at 15.04. The stochastics are falling, and the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for lower prices, the market needs to take out support 15.00 and then trend support at 14.80. On the upside, the reaffirmation of support at 15 could trigger a break above resistance at 10 DMA at 15.19. In order to regain upside conviction, futures need to take out the 15.29 level before targeting 15.50. A doji candle after the three black crows formation signals uncertainty about the outlook for lower prices and the futures need to take out the 15.00 to confirm the outlook for falling prices.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher yesterday as intraday trading saw prices supported above 430. The market closed at 430.60. The RSI is falling, and %K/%D is negative and diverging. The MACD diff is negative and diverging, suggesting growing selling pressure. The indicators point to lower prices in the near term and to confirm the break of the support, prices need to take out 430. A break below this level towards 38.2% fib level of 423.59 would confirm the strong bearish momentum. Conversely, prices need to hold above the 10 DMA at 437.08 and then could and then 440 in the near term in order to regain upside traction; secondary resistance stands at 449.60. Two opposite doji candles point to market uncertainty around price movement, and futures need to take out near-term support to set the scene for further bearish momentum.

NY 2nd Month Coffee Futures

NY coffee futures gained ground yesterday as buying pressure prompted a test of 10 DMA 127.36. The market closed at 126.60. The stochastics are decreasing, and the MACD diff is negative and diverging, suggesting further bearish momentum in the near term. Monday’s sharp break below the key DMA support points to a strong sell signal, however, we anticipate prices to test the moving averages once again today. A breach back above 126.50 would bring into play the recent firm resistance of 128.25. Futures need to take 23.6% fib level at 129.51 in order to confirm the trend. On the downside, the fall below previous day closing prices at 125 could trigger losses through 40 DMA at 124.77 and 123.50. The convergence of DMAs provides strong support/resistance for prices, and if 40 DMA remain firm, we could see prices edge higher.

Ldn 2nd Month Coffee Futures

Ldn coffee futures consolidated yesterday as buying pressure prompted resistance at the 10 DMA triggering a close at 1325. The stochastics are falling, with the %K/%D converging on the upside, outlining the improvement in positive sentiment. The MACD is negative and converging, supporting the outlook for waning selling pressure. In order to confirm the full candle on the upside, and the positive indicators, prices need to take out the 10 DMA at 1332 today, which could pave the way for a test of 1340 resistance level. On the downside, a break below 1317 could trigger further losses towards 1300. A breach of this level would confirm the downside trend. A close back above 10DMA today would regain upside conviction and pave the way for further gains.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground yesterday as protracted buying pressure prompted a test of the 10 DMA level to close on the front foot at 2491. The stochastics are rising, and the %K/%D seen converging on the upside, suggesting a buy signal in the near term. The MACD is also seen converging, however, lack conviction to suggest an improving sentiment. To confirm another bullish candle, futures need to break above 2500 and then target the 50% fib level at 2513.50. On the downside, the break below 2434 could set the scene for lower prices towards the support of 200DMA level at 2426. However, the market struggled below that level in recent weeks, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term.

Ldn 2nd Month Cocoa Futures

Prices weakened yesterday as moderate selling pressure triggered a close below the 40DMA support level; the market closed at 2287. The stochastics are falling, and the MACD is positive and converging, suggesting waning buying pressure. Dips in the market have been well bid in the last couple of sessions, but in order to confirm the outlook for higher prices, futures need to break above the current resistance at 40 DMA at 2289 and then 10 DMA at 2299. Conversely, a break below 100 DMA at 2261 support line could set the scene for a test of 2250. With the longer-term DMA crossing below the short term one, we could see a potential change in trend; however, the prices need to break above current resistance to confirm the outlook for more bullish momentum.

 

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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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