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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 gained ground on Friday as buying pressure triggered a close on the front foot at 16.89. The stochastics are rising, with %K/%D trading in the overbought, and the MACD diff is positive and diverging, signalling a buy trend in the near term. This suggests we could see higher prices in the near term towards 123.6% fib level at 17.35, but the market needs to close above the immediate resistance at the 61.8% fib level at 17.01 beforehand. On the downside, prices need to break below 16.50 towards the trend line at 16.40, and then we could see prices retreat back through the 10 DMA at 15.98. Upside momentum is strong but the long upper wick on Friday points to apprehension amongst traders around 17, and futures need to take out this level in order to confirm the outlook on the upside.

Ldn 2nd Month Sugar Futures

Ldn sugar futures rallied on Friday as protracted buying pressure triggered a close on the front foot at 461.60. The RSI is rising, while %K/%D are converging on the upside. The MACD diff is negative and is about to converge on the upside, a strong buy signal. On the downside, a break below the support level of 452.80 could trigger losses back towards 10 DMA at 450.65, down through 449.60 to confirm the outlook of lower prices in the longer term. On the upside, the affirmation of support above 50% fib level of 460.90 could trigger gains through 470 towards 478–the April 2017 levels. Markets rallied sharply last week, and a close above the key resistance level at 50% fib retracement suggests further appetite. The indicators point to further buying pressures, and prices need to completely break through the resistance to confirm that outlook.

NY 2nd Month Coffee Futures

NY coffee edged higher on Friday as intraday trading caused futures to test appetite for prices above 23.6% fib level at 129.51, the market closed below at 129.15. Stochastics are rising, and %K/%D are diverging towards the overbought territory, confirming positive momentum. The MACD diff is positive and diverging, suggesting growing buying pressure. To maintain positive momentum, prices need to close above 23.6% fib level and then target 131 before 133.75 - last weeks’ highs. On the downside, the rejection of prices above 130 could trigger losses back to the 40 DMA at 126.44 before targeting 10 DMA at 125.92. Buying pressure subsided as prices struggled to break above the 130 level; however, indicators point to a continuation of the buying pressure, and the doji candle confirms market uncertainty. The reaffirmation of support above the previous day’s lows at 129.30 could strengthen the outlook of higher prices.

Ldn 2nd Month Coffee Futures

Lnd coffee futures failed above 1376 on Friday as intraday trading caused futures to close at 1369. The stochastics weakened, with %K/%D converging on the downside in the overbought, and the MACD diff is converging on the downside, suggesting growing selling pressured. The rejection of prices at 1376 has formed a candle with a narrow body but a long wick on the upside, suggesting an appetite for higher prices however, lacking the conviction to break above the near term resistance. If prices were to break above 1380, this could trigger a test of 23.6% fib level at 1385.57 and then 1393 – December highs. To confirm the shooting start formation, futures need to take out 10 DMA at 1366 and then robust support at 40 DMA at 1348. A break below this level would confirm the outlook for lower prices.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground on Friday as buying pressure prompted a close above 10 DMA at 2435. The market closed at 2443. The stochastics are increasing, with %K/%D converging on the upside in the oversold territory, while the MACD diff is about to converge on the upside, suggesting bullish momentum in the near term. The prices have been supported above 2370 in recent sessions. The fall below this level could trigger losses through 2355. On the upside, a breach back above 40 DMA at 2469 would bring into play the recent firm resistance of 2500. Futures closing above 10 DMA and a full candle suggest a strong appetite for prices above that level, and a complete break out above that level would help to confirm the bullish outlook in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged higher on Friday and managed to close above 10 DMA at 2327.81. The indicators suggest we could see higher prices in the near term. The stochastics are rising, with %K/%D edged higher out of the oversold territory, and the MACD diff is positive and diverging on the upside, suggesting growing buying pressure. On the upside, Friday’s close above 2327 suggests an increased appetite for higher prices through 2340 towards 2355, the robust level on the upside. Conversely, on the downside, if futures fail into 10 DMA at 2295, then we could see futures break back below 2280 before the 40 DMA level at 2276. The rising DMAs provide robust support on the downside, but to confirm higher prices, futures need to be supported above 2327 today.

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.

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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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