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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 intraday trading caused futures to close at 16.734. The stochastics are falling, yet converging, with %K still in the oversold territory, but the MACD is negative and diverging, pointing to growing selling pressure. The rejection of prices above 17.00 has formed a candle with a long wick on the downside, suggesting an appetite for lower prices, however, lacking the conviction to break above the near term support. If prices were to break below trend support at 16.46, this could trigger a test of 100 DMA at 16.39 and then at 15.87. On the upside, futures need to take out 10 DMA at 17.12 and then robust resistance at 40 DMA at 17.29. Indicators point to further selling pressure today, but the futures need to take out the trend support in the near term.

Ldn 2nd Month Sugar Futures

Lnd sugar futures softened yesterday after finding support below 440. The market closed at 435.30. The stochastics are falling, however, are seen narrowing once again, and the MACD diff lacks convictions, suggesting that the price decrease that we saw in the last couple of sessions might be short-lasting. A break below 430 would bring into play the support at 427.60. Conversely, on the upside, futures need to find support above 440 and then break above the previous week’s high of 444.90 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the 10 and 100 DMAs, with the shorter term about to cross below the longer-term one, which could be a sell signal. The indicators point to a bearish outlook, and long candles signal increased market certainty, however, prices need to break below the current support levels to confirm the trend.

NY 2nd Month Coffee Futures

NY coffee futures edged lower yesterday as prices closed at 152.10. The indicators continue to favour the downside, however converging, with %K still in the oversold area. MACD is negative and does not point to a change in direction. A break below the 23.6% fib level at 151.38 would bring into play the recent sessions’ support level at 150. Prices have been relatively well supported below the trendline, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 155.40 and then target the 10 DMA at 155.43 in the near term. The long candle body with small wicks suggests that while there was a sell-off during the day, the buyers had the appetite for higher prices, as the futures closed above the previous day open. The break below the current support level would confirm the downside momentum.

Ldn 2nd Month Coffee Futures

Ldn coffee futures weakened yesterday, closing below the 1600 level at 1597. The stochastics are falling, and the MACD diff is also negative and diverging, pointing to a near-term decline in prices. Prices need to break below the support of 1600 completely before targeting 40 DMA at 1546. This would break the recent narrow trading range. Conversely, if support at 1600 can hold firm, this could trigger gains towards the resistance at 1642. A breach of this level would confirm the outlook for higher prices, with gains seen towards 1647. We expect the momentum to remain on the back foot, but the futures need to break below the current support level to confirm the momentum.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground yesterday after prices found support at 2372, this triggered a close at 2396. The stochastics have converged on the upside but still remain in the oversold territory. The MACD diff is negative but is starting to converge, suggesting we could see futures test resistance at 10 DMA once again. On the downside, in order to confirm lower prices, futures need to close below the current support at 2355. The bullish candles suggest a strong appetite for higher prices. The 40 and 100 DMAs have been diverging, suggesting a positive trend, but this is not a proactive signal.

Ldn 2nd Month Cocoa Futures

Ldn cocoa edged higher yesterday as intraday trading caused futures to test appetite at 10 DMA at 2280, the market closed below at 2272. Stochastics are rising, and %K/%D converged on the upside out of the oversold territory, confirming a change of trend in the near term. The MACD diff is negative and converging, suggesting waning selling pressure. To maintain positive momentum, prices need to close above 10 DMA and then target 2300, which is the last weeks’ highs. On the downside, the rejection of prices above 2277 could trigger losses back to 2250 before targeting a 38.2% fib level at 2211. Buying pressure remains weak; however, indicators point to an end of the selling pressure, and the longer candle body confirms market growing certainty. The reaffirmation of support above 10 DMA could strengthen the outlook of higher prices.

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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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