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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 protracted buying pressure prompted a test of the 10 DMA level to close on the front foot at 17.36. The stochastics are falling, and the %K/%D seen converging on the upside, suggesting waning selling pressures in the near term. The MACD are also is negative, however, lack the conviction to suggest an improving sentiment. To confirm a resumption in upside momentum, futures need to break above the 10 DMA at 17.49 and then target the 17.66 level. On the downside, a break below 17.00 could set the scene for lower prices towards support at 16.85. However, the market has been well supported below this level in recent weeks, and the longer bodied candle suggests a growing buying pressure. We believe that prices will strengthen in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher yesterday as trading saw prices tested resistance at 460. The market closed at 459.10. The RSI is rising marginally, and %K/%D is negative and diverging, soon to enter the oversold territory. 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 rejection of the 462; prices need to take out 452.80. A break through this level towards 449.60 would confirm the bearish momentum. Conversely, in order to outline positive momentum, futures need to take out the 10 DMA level at 464.45 before testing of resistance at 470, tertiary resistance stands at 478.80. Another doji candle signals uncertainty about the outlook for higher prices, and if the futures continue to struggle above 10 DMA we could see prices edge lower in the near term.

NY 2nd Month Coffee Futures

NY coffee futures gained ground yesterday as buying pressure triggered a close on the front foot at 152.80. The stochastics are starting to rise, with %K/%D about to converge on the upside, and the MACD diff is negative but converging, signalling a buy trend in the near term. This suggests we could see higher prices in the near term towards 155.40, but the market needs to close above the immediate resistance at trend resistance 154.60 beforehand. On the downside, prices need to break below 146.95 towards 145, and then we could see prices retreat back through the 23.6% fib level at 141.06. Long upper wick points to the appetite for higher prices; however, futures need to take out 155 in order to confirm the outlook on the upside.

Ldn 2nd Month Coffee Futures

Ldn coffee futures rallied yesterday as protracted buying pressure prompted a break of the 10 DMA level to close on the front foot at 1515. The stochastics are rising, and the %K/%D seen converging, suggesting a buy signal in the near term. The MACD is also seen converging, soon to become positive. To confirm the bullish candle, futures need to break above the 1530 and then target 1550. On the downside, the break below 23.6% fib level at 1451 could set the scene for lower prices towards the support of 40 DMA level at 1425. Long bodied candle and break above 10 DMA point to an appetite for higher prices in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower yesterday as intraday trading saw futures close at 2549. The stochastics are rising, with %K/%D seen converging in the oversold, as the MACD diff is positive but lacks the conviction to point out an outlook. This outlines the weakening strength of buying pressure in recent sessions. In order to confirm a continuation of upside momentum, futures need to close back above the previous day’s highs at 2590 and then 2600. The key level on the upside is 61.8% fib level at 2612. Conversely, rejection of prices at 2600 could trigger losses back towards 2500. The moving averages are rising, and this could provide support in the medium term. Downside tails could trigger gains back above 2500 in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures failed above 2450 once again yesterday as prices closed at 2419. The stochastics are converging on the downside, with %K/%D still in the overbought territory. The MACD is positive and converging, pointing to waning buying pressure in the near term. The rejection of higher prices may prompt a break back towards support at 2400, a subsequent breach of this level could trigger losses towards 61.8% fib level at 2391. On the upside, a break of 2450 may prompt futures to retest 2466. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Long upper and short lower wicks point to an appetite for higher prices; however, the future needs to break above 2450 to confirm the outlook.

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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