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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 opened below Monday’s opening price, testing support at 17.40, however, closed higher on the day at 17.75. The stochastics are rising, with %K edging towards the overbought territory; the MACD converged on the upside, highlighting the outlook for a change of trend in the near term. Resistance at 17.90 has held firm in recent sessions, and this could trigger gains to trend resistance at 17.96, with secondary resistance at 18.00. On the downside, a break below 40 DMA support level may set the scene for a correction to the downside. A break of that support could pave the way for lower prices through 17.00. Near term momentum is on the upside, a break above trend resistance is needed to confirm the outlook.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher yesterday as intraday trading cause prices to test resistance at 470.60 and then closed at 468.70. The stochastics are rising, and %K is in the overbought area, and the MACD diff is positive and diverging, outlining the continued bullish outlook. The RSI is rising, and we expect futures to edge higher in the near term towards the resistance of 470, the robust level on the upside. On the downside, if futures fail into 10 DMA at 462.45, then we could see futures break back below the 40 DMA at 457.88 before the support of 452.80. We expect futures to firm in the near term; however, the prices near to breach the near term resistance of 470 level before confirming the bullish outlook.

NY 2nd Month Coffee Futures

NY coffee futures softened yesterday after closing below 10 DMA at 159.85. The stochastics are falling out of the overbought territory, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 159.30. A break below this level would bring into play the 158.25. On the upside, futures need to gain back above 165.50 – the previous day’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the 168.65 level; this could strengthen the trend in the long run on the upside. The longer upper wick points to an increased appetite on the upside, but we expect to see the price edge lower in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged lower yesterday after futures tested 1693 to close at 1621. The stochastics have converged on the downside in the 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 1700, futures need to take out support at 1600 and then target 10 DMA at 1594. On the upside, futures need to close above 1650 and then target 1700 in order to confirm the outlook of higher prices. Long upper wick points to an appetite for higher prices; however, weakness prevailed during the day. We expect futures to weaken in the near term back.

NY 2nd Month Cocoa Futures

NY cocoa held the nerve yesterday as intraday trading caused futures to close at 2418. RSI is rising marginally, and %K/%D is diverging on the downside in the oversold area, confirming the change of trend in the near term. The MACD diff is negative and diverging, suggesting waning buying pressure. To maintain positive momentum, prices need to close above 10 DMA at 2447 and then target 40 DMA at 2460. On the downside, the rejection of prices above 2434 could trigger losses back to the 2400 level before targeting 42355. Buying pressure remains weak, and indicators point to the continuation of bearish momentum. The smaller candle body confirms market uncertainty. The break of support at 2400 could confirm the outlook for lower prices in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures gained ground yesterday as buying pressure prompted a test of 2294. The market closed at 2282. The stochastics are oversold yet converged on the upside, and the MACD diff remains negative, suggesting a change of momentum in the near term. The prices have been capped below the 10 DMA at 2303. The fall below the 2277 level could trigger losses through 2250 and 2200. On the upside, a breach back above 50% fib level at 2301 would bring into play the recent firm resistance of 10 DMA, confirming an inverse hammer formation. Futures need to take out the trend resistance at 2307 in order to confirm the trend. The convergence of DMAs provides strong resistance for prices, and if futures break above 10 DMA, we could see prices edge higher.

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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