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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 yesterday as intraday trading saw prices tested support at 17.00. The market closed at 17.17. The RSI is falling, and %K/%D is negative and diverging, entering 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 support; prices need to take out 17.00, but we have seen appetite for prices below this level at 16.85. A break below this level towards this level would confirm the strengthening bearish momentum. Conversely, appetite for prices above the 10 DMA at 17.37 could trigger a test of 17.66, secondary trend resistance stands at 17.78. A doji candle after the bearish candle signals uncertainty about the outlook for lower prices, and the futures need to take out the 17.00 to confirm the outlook.

Ldn 2nd Month Sugar Futures

Lnd sugar futures lost ground yesterday after prices tested the 454 support level, prompting a close at 454.10. The stochastics are falling, with %K/%D in the oversold territory, and the MACD diff is negative and converges as futures failed to confirm the outlook of falling prices. Futures need to close above 460 resistance and then target 10 DMA at 461.19 in the medium term. On the downside, the short-bodied candle suggests low appetite lower prices in the near term. Prices need to close below 452.80 before targeting 449.60. Two short-bodied bearish candles suggest uncertainty surrounding the outlook for lower prices, and until the futures break below the near term support, we do not expect prices to edge much lower.

NY 2nd Month Coffee Futures

NY coffee futures softened marginally yesterday as intraday trading saw futures test appetite at 155.40. This level held firm, and the future closed at 152.95. The stochastics are consolidating, with %K/%D converging on also lacking conviction. Likewise, the MACD diff converged on the upside, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 155, which could set the scene for futures to take out the 158.25. On the downside, the market needs to take out support at 150 and then support at 10 DMA at 149.33. The 10 DMA level continues to support the futures on the downside, however, seen flattening, and with a longer upper wick on Thursday, we could see the bears’ strength grow in the near term.  

Ldn 2nd Month Coffee Futures

Prices weakened yesterday as moderate selling pressure triggered a close below the 1500 support level; the market closed at 1490. The stochastics are falling; however, the %K/%D is seen converging as it nears the oversold, signalling a potential acceleration of a trend. The MACD is negative and diverging. Dips in the market have not been well bid in the last couple of weeks, and in order to confirm the ascending triangle, trend prices need to break back above the current resistance at 10 DMA at 1502 and then 1536. Conversely, a break below the 1479 support line could set the scene for a test of 23.6% fib level at 1451. We expect prices to continue to weaken today and remain on the back foot in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures sold off yesterday after investors rejected prices above 2523, prompting a close below 10 and 100 DMAs at 2510 and 2494, respectively, at 2485. The stochastics are falling out of the overbought, the %K/%D converged on the upside and falling, suggesting for short-term negative trend. The MACD diff is positive and converging, indicating improving sentiment on the downside. To confirm another bearish candle, prices need to break below the support level at 40 DMA at 2449 before the 2440 level. Secondary support stands at 2434, a break below, which would confirm the three black crows formation. On the upside, to regain upside conviction, futures need to close back above 2523 and then 2550 in the near term. Near term momentum is on the downside, the close below two shorter-term DMA confirms this trend.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged lower yesterday as prices closed at 2342. The indicators favour the downside, with %K/%D diverging on the downside out of the overbought area, suggesting further selling pressures. A break below the 200 DMA at 2322 would bring into play the recent sessions’ support level at 40 DMA at 2302. In order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 10 DMA at 2378 and then target the 61.8% fib level at 2391 level in the near term. The three black soldiers formation suggests strong selling pressures. The break below the support level would confirm this formation.

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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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