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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 yesterday as buying pressure triggered a close on the front foot above 10 DMA at 17.07. The stochastics are falling, with the %K/%D exiting the overbought area, as the MACD diff is positive and converging on the downside. This suggests we could see lower prices in the near term towards the trend support of 16.13, but the market needs to take out immediate resistance of 16.50. On the upside, the candle closed above 10 DMA at 17.03, and if the prices gain ground above this level, we could see prices test 17.50 before 17.66. Longer upper wick points to an appetite for higher prices, but futures need to take out 10 DMA completely in order to confirm the outlook on the upside.

Ldn 2nd Month Sugar Futures

Ldn sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 10 DMA. This level held firm, and the future closed at 453.70. The stochastics are falling, with %K/%D trading out of the overbought, and the MACD diff is positive but about to converge on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 40 DMA at 442.19, which could set the scene for futures to take out the trend support at 439. On the upside, the market needs to take out resistance of 10 DMA at 457.69 and then resistance at 460. The candle found support above 450, and a long upper wick signals appetite for higher prices. If the futures break below the current support, we could see prices edge lower.

NY 2nd Month Coffee Futures

NY coffee futures edged lower yesterday after futures tested 143.25 once again to close at 140.35. The stochastics are falling out of overbought, and the MACD diff is positive and converging, suggesting lower prices in the near term. To confirm the bearish indicators and rejection of prices above 10 DMA, futures need to take out support at 140 and then target 136.15. On the upside, futures need to close above 10 DMA at 140.90 and then test 145 in order to confirm the outlook of higher prices towards 146.95. Long upper wick points to an appetite for higher prices; however, weakness prevailed during the day, and doji candle points out to market uncertainty. Prices need to take out current resistance to confirm the outlook for higher prices. We expect futures to weaken in the near term back.

Ldn 2nd Month Coffee Futures

Ldn coffee futures surged higher yesterday as intraday trading caused prices to test resistance at 1484 and then closed at 1474. The stochastics remain elevated in the oversold, and %K/%D is seen converging on the upside, while the MACD diff is positive and is diverging, outlining the improved outlook on the upside. Long candle body yesterday points to a strong appetite and could edge higher above 1484 towards 1490. On the downside, a break below 1450 could trigger losses towards the 10 DMA level at 1438, confirming the double top formation. Momentum favours the upside, and we expect this to remain the case in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures failed into 2350 yesterday as prices closed at 2324. The stochastics are falling, with %K entering the oversold, and the MACD diff is negative and diverging. The rejection of higher prices may prompt a break back towards 2300; a subsequent breach of this level could trigger losses towards 23.6% fib level at 2290. On the upside, a break of 2400 and 38.2% fib level at 2414 may prompt futures to retest 2434. A subsequent breach of this level would prompt prices to regain upside momentum. Three black crows pattern formation confirms indicators’ outlook for lower prices in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures sold off yesterday as lack of appetite for higher prices helped to break the 2200 support; the market closed at 2191. Stochastics continue to fall, with %K in the oversold, suggesting further selling momentum in the near term. MACD diff is just converged on the downside, supporting the outlook for deteriorating prices. The last two days futures opened below the previous day’s lows, a sign of an impending market downturn. The sell-off yesterday and close near the lows suggest further selling pressure below the current support level, and the above-mentioned indicators support lower prices. A break below 2150 could set the scene for a test of support at 2147. On the upside, support around 38.2% fib level at 2211 would help reaffirm the bullish trend in the near term. We believe that the market lacks conviction, and prices should continue to fall.

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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