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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 lower yesterday as moderate selling pressure triggered a close at 17.73. The stochastics are rising, yet converging, with the %K exiting the overbought territory; the MACD diff is positive and converging. A break of the 10 DMA at 17.64 could trigger losses through 17.50, with the secondary level at 40 DMA at 17.26. On the upside, a break above previous sessions’ highs at 17.91 could set the scene for a test of 18.00, pointing to a change of trend for more bullish momentum. Yesterday’s bearish spinning top formation points to market indecisiveness about the outlook for higher prices, and we need the futures to break support at 17.50 to confirm the outlook.

Ldn 2nd Month Sugar Futures

Lnd sugar futures lost ground yesterday after prices failed into the 10 DMA support level, prompting a close at 462.20. The stochastics are falling, with the %K/%D leaving the overbought territory and have given a sell signal, the MACD just converged on the downside as futures failed to confirm the outlook of higher prices after failing into the 10 DMA. Futures need to close above 470 resistance and then target 471.80 in the short run to confirm the bullish momentum. On the downside, the long candle suggests increased appetite lower prices in the near term. Prices need to close below 40 DMA at 460.06 before targeting 452.80. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall in the near term.

NY 2nd Month Coffee Futures

NY coffee edged higher yesterday as intraday trading caused futures to test appetite for prices at 10 DMA, the market closed at 160.80. Stochastics are falling, and %K/%D is seen diverging on the downside, outlining bearish momentum. The MACD is negative and diverging, pointing to price correction in the near term. To confirm another bullish candle, prices need to close above 165.50 and then target trend resistance at 168.65. On the downside, the rejection of prices above 10 DMA at 161.85 could trigger losses back to 159.30 before targeting 158.25. Buying pressure remains weak, and the doji candle confirms market uncertainty. The break above the resistance of 10 DMA could confirm the outlook of higher prices.

Ldn 2nd Month Coffee Futures

Ldn coffee futures held their nerve yesterday as intraday trading saw prices close at 1611. The RSI is rising, and %K/%D is negative and diverging, leaving the overbought territory. The MACD diff is positive and converging, 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 the 1600. A break below this level towards the 1585 would confirm the strong bearish momentum. Conversely, appetite for prices above the 10 DMA at 1621 could trigger a test of resistance of 1642; secondary trend resistance stands at 1650. A positive doji candle after a bearish candle signal market uncertainty, and narrowing resistance DMA is capping gains, a break out of which would set the scene for strong momentum. We anticipate prices on the back foot in the near term.  

NY 2nd Month Cocoa Futures

NY cocoa prices gained ground yesterday, appetite for higher prices triggering a close at 2433. The stochastics begin to favour the upside, with the %K/%D converging out of the oversold territory, 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 candle suggests we could see prices challenge 10 DMA at 2438 in the near term. In the medium term, futures need to hold above 2450 and then the 40 DMA level at 2457. On the downside, a break below 2400 could trigger losses back to 2355. The long candle body confirms the outlook for higher prices, however, futures need to break out of the 2434 resistance level to confirm the outlook for higher prices.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures consolidated yesterday as protracted buying pressure triggered a close on the front foot at 2297. The RSI is rising, and %K/%D is diverging on the upside out of the oversold. The MACD diff is negative and about to converge on the upside, suggesting growing buying pressure. The indicators point to higher prices in the near term; prices need to take out 50% fib level at 2301. A break above this level towards 40 DMA at 2307 would confirm the strong bullish momentum. Conversely, an appetite for prices below 2277 could trigger a test of support at 2250. Long upper wick points to increased appetite on the upside, and a break above 50% fib level would confirm the outlook for higher prices.

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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