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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 prices close at 15.32. The RSI is rising, and %K/%D is positive and diverging, suggesting further bullish momentum. The MACD diff is negative and converging, highlighting falling selling pressure. The indicators point to higher prices in the near term and to confirm appetite for higher prices, and futures need to break above the 15.50 – the level previously rejected – which could then trigger a test of resistance of 15.78. On the downside, the rejection of the support at 10 DMA at 15.15 could see prices test the trend support at 15.04. A break below this level towards the 40 DMA would confirm the correction on the downside. A positive doji candle after a bearish candle signals market uncertainty, and prices struggling to break of the current trading range, a break out of which would set the scene for strong momentum. We anticipate prices on the front foot in the near term.  

Ldn 2nd Month Sugar Futures

Ldn sugar futures gained ground yesterday as buying pressure prompted a test of 445.90. The market closed at 444.70. The stochastics are rising, and the MACD diff is negative and converging, which could aid further bullish momentum in the near term. Prices have been supported above the 440 level for the last couple of sessions, and if this level proves robust, we could see prices edge higher in the near term. A break below that level could break the trend and set prices down to 10 DMA at 436.06 and 427.60. On the upside, a breach above the previous weeks’ high of 449.60 would bring into play the 452.80. Prices need to break out above the 449.60 level to confirm the bullish momentum.

NY 2nd Month Coffee Futures

NY coffee futures softened yesterday after piercing the support level of 124. The market closed higher at 126.15. The stochastics are rising, with %K/%D just converging on the upside, and the MACD diff is negative, however, lacks conviction. The reaffirmation of support at 10 DMA at 126.21 could set the scene for higher prices back to test the 128 level. On the downside, futures need to break below the support of 40 DMA order to confirm the bearish trend. Indeed, the 40 DMA support level has been tested and broken below for the last couple of sessions, suggesting an appetite for prices below this level. The long lower wick confirms this. The market needs to break below the 40 DMA in the immediate term to confirm the outlook.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged higher yesterday breaking above resistance at 40 and 100 DMAs at 1349 and 1346 respectively and closing at 1359. The stochastics are edging towards the overbought territory, and the MACD diff is positive and diverging, outlining recent bullish sessions. On the upside, futures need to break completely above the longer-term DMA in order to confirm upside momentum. The reaffirmation of support at 1350 could trigger gains towards the level at 1375; this could strengthen the trend in the long run on the upside. A break back below the current at 1340 support would bring into play the 10 DMA level at 1326, which could set the scene for support at 1317. We see prices edge higher in the near term; however, futures need to close above the DMAs to confirm the outlook for higher prices.

NY 2nd Month Cocoa Futures

Prices weakened yesterday as moderate selling pressure triggered a close below the 10 DMA support level; the market closed at 2450. The stochastics are falling, signalling a continuation in the bearish trend. The MACD lacks conviction, and the doji candle formation supports market indecisiveness. In order to confirm the change in trend, prices need to break below the current support of 200 DMA at 2432 and then 2414. Conversely, a break above the 10 DMA resistance line at 2471 could set the scene for a test of 40 DMA at 2494. We expect prices to remain supported above the 40 DMA support level in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures gained ground yesterday as buying pressure prompted a test of 10 DMA at 2282. The market closed at 2271. The stochastics are decreasing, yet converging, and the MACD diff just converged on the downside, suggesting bearish momentum in the near term. The prices have been supported above the 100 DMA at 2262. A breach of this level could trigger losses through 2210 and 2200, helping to confirm the reaffirmation of resistance and descending triangle. On the upside, a breach back above 10 DMA at 2282 would bring into play the recent firm resistance of 2300, confirming an inverse hammer formation. Futures need to take out the trend resistance at 2295 in order to confirm the trend. The convergence of DMAs provides strong support/resistance for prices, and if 100 DMA remain firm, we could see prices edge higher.

Contents

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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