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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 softened on Friday after piercing the support level of 17.66. The market closed higher at 17.67. The stochastics are rising, yet %K/%D just converged on the downside, and the MACD diff is positive, however lacks conviction. The reaffirmation of support at 10 DMA at 17.65 could set the scene for higher prices back to test the 17.91 level. On the downside, futures need to break below the support of 17.50 in order to confirm the bearish trend. Indeed, the 10 DMA support level has been tested and broken below marginally for the last couple of sessions, suggesting an appetite for prices below this level, however, struggled to break below the level. The long lower wick confirms this. The market needs to break below the 40 DMA at 17.26 in the near term to confirm the outlook.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened on Friday after breaking support above 460. The market closed at 459.80. The stochastics are falling out of the overbought territory; the %K/%D has recently converged on the downside, and the MACD diff just converged on the downside. The recent selling pressure suggests that we could see lower prices in the near term through the support of 452.80. A break below this level would bring into play the 449.60 level. On the upside, futures need to gain back above 10 DMA at 464.76 in order to confirm upside momentum. The reaffirmation of support there could trigger gains towards the level at 470; this could strengthen the trend in the long run on the upside. The long lower wick points to an increased appetite on the downside, and we could see prices edge lower in the near term.

NY 2nd Month Coffee Futures

NY coffee futures weakened on Friday, testing support at the 159.35 level again. The market closed at 159.60. The stochastics are falling, and the MACD diff is also negative and diverging, pointing to a near-term decline in prices. The ADX and DMI outline the outlook for deteriorating prices, yesterday’s bearish engulfing candle suggests lower prices. Prices need to break below support at 159.30 before targeting 158.50. Conversely, if support at 160 can hold firm, this could trigger gains to break the resistance at 10 DMA at 161.55. A breach of this level would confirm the outlook for higher prices, with gains seen towards 165.50. In the longer run, prices need to break below the upper trend channel. We expect the momentum to remain on the back foot.

Ldn 2nd Month Coffee Futures

Lnd coffee futures gained ground on Friday as buying pressure prompted a close on the front foot at 1619. The stochastics are falling, with %K/%D diverging on the downside; the MACD positive and converging, highlighting the outlook for a change of trend in the near term. Resistance at 10 DMA at 1621 has held firm in recent sessions, and this could trigger gains to 1642, with secondary resistance at 1650. On the downside, a break below the 1600 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 1585. Near term momentum is on the upside, a break above 10 DMA is needed to confirm the outlook.

NY 2nd Month Cocoa Futures

NY cocoa futures lost ground on Friday as intraday trading caused prices to close on the back foot at 2402. The stochastics are oversold, and %K/%D converged on the upside, and this could trigger further losses in the near term through the 2400 level. The MACD diff is negative and diverging, which also adds to downside impetus. Yesterday’s selling pressure prompted a test of trend support at 2355, appetite for prices below this level could trigger back towards 2350. On the upside, the bulls need to gain a footing above the 10 DMA at 2435 in order to regain upside conviction. Appetite above this level could test the resistance at 40 DMA at 2457.

Ldn 2nd Month Cocoa Futures

London cocoa futures edged higher on Friday as trading saw prices close at 2287. The stochastics remain oversold but are seen converging on the upside, and the MACD diff is negative and converging. A break of 2277 could trigger losses through 2250, with the secondary level at 2231. On the upside, a break above 10 DMA at 2294 could set the scene for bullish momentum towards 40 DMA at 2307. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 10 DMA, we could see more downside movement in the near term.

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.

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