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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 edged higher on Friday as intraday trading saw prices supported above 17.50. The market closed at 17.57. The RSI is falling, and %K/%D is positive and diverging, edging towards the overbought. The MACD diff is positive but lacks the conviction to suggest an outlook. The indicators paint a mixed picture, and to confirm the rejection of the support; prices need to take out 10 DMA at 17.27. A break below this level towards 17.00 would confirm the strong bearish momentum. Conversely, appetite for prices above 17.66 could trigger a test of 17.79 – the recent highs, secondary resistance stands at 18.00. Three opposite short-bodied candles in the last sessions highlight market uncertainty around price movement, and futures need to take out near-term support to set the scene for further bearish momentum.

Ldn 2nd Month Sugar Futures

Lnd sugar held the nerve on Friday as intraday trading caused futures to close at 467.60. RSI is rising marginally, and %K/%D converged on the upside near the overbought area, confirming a further bullish trend in the near term. The MACD diff is positive and diverging, supporting the outlook for higher prices. To maintain positive momentum, prices need to close above 470, the level the futures struggled to break, and then target 476.20, which is the last weeks' highs. On the downside, the rejection of prices above 469.50 could trigger losses back to the 10 DMA level at 461.72 before targeting 460. Buying pressure remains weak, however indicators point to a pick up of that momentum. The doji candle with a long lower wick confirms appetite for higher prices but also highlights market uncertainty above 470. The break of that level could confirm the outlook for higher prices in the near-term.

NY 2nd Month Coffee Futures

NY coffee futures softened on Friday after finding support above 150. The market closed at 152.90. The stochastics are gaining ground in the overbought territory, and the MACD diff is positive and diverging, highlighting the recent market rally. A break below 150 would bring into play the 146.95 level, which could set the scene for 10 DMA at 145.72. On the upside, futures need to gain back above 155.40– the previous day's high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 158.25; this could strengthen the trend in the long run on the upside. The hanging man formation, where there was a significant sell-off during the day, points to an end of the uptrend, and we could see price edge lower in the near term.

Ldn 2nd Month Coffee Futures

London coffee futures edged higher on Friday as intraday trading saw prices close at 1539. The stochastics remain elevated but are seen converging on the downside, with the %K soon to leave the overbought territory, and the MACD diff is positive and converging. A break of 1515 could trigger losses through 1500, with the secondary level at 10 DMA at 1491. On the upside, a break above last sessions' highs at 1555 could set the scene for bullish momentum. After the last session's market indecisiveness – the spinning top formation – as prices struggle above 1550, we could see more downside movement in the near term.

NY 2nd Month Cocoa Futures

NY cocoa prices gained ground on Friday with the appetite for prices above 40 DMA, triggering a close at 2463. The stochastics favour the upside, with the %K/%D converging on the upside, suggesting we could see prices improve in the near term. The MACD diff is negative and converging, pointing to an improved outlook. The RSI is rising, and yesterday's long candle body suggests we could see prices challenge 100 DMA at 2486 in the near term. In the medium term, futures need to hold above 2500 and then the level at 2513. On the downside, a break below the 2400 support level could trigger losses back to 2350. Three white soldiers formation in the previous sessions confirms the outlook or higher prices. We anticipate prices to improve today as buying pressure continues.

Ldn 2nd Month Cocoa Futures

Lnd cocoa futures consolidated on Friday as protracted buying pressure triggered a close on the front foot above 10 DMA at 2300. The stochastics are rising, with %K/%D converging on the upside, and RSI is also increasing. The MACD diff just converged on the upside, confirming growing buying pressure; this could set the scene for higher prices to break above 100 and 40 DMA at 2305. A break above this level would confirm the outlook of higher prices, and confirm a three white soldiers pattern formation. On the downside, a break below the 2250 support level and reaffirmation of resistance below 2300 could strengthen the trend on the downside in the long run. The long body and a long downside wick point to an increased appetite for higher prices, and indicators confirm the outlook for more upside momentum in the near term.

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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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