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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 on Friday as trading saw prices close above 40 DMA at 17.31. The stochastics are seen diverging on the upside, with the %K/%D now edging higher in the neutral territory, and the MACD diff is negative and converging. A break back below 10 DMA at 17.05 could trigger losses through 17.00, with the secondary level at 1685. On the upside, a break above 17.50 could set the scene for bullish momentum towards the 2-week high of 17.66. The spinning top formation has been formed, which points to market indecisiveness, however, a jump above the resistance of 40 DMA points to an appetite for prices above that level.

Ldn 2nd Month Sugar Futures

Ldn sugar strengthened on Friday, as protracted buying pressure triggered a close on the front foot at 447.20. The stochastics are rising, with %K/%D is diverging on the upside out of the oversold. The MACD diff is negative and converging. A narrow bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 449.91. This would confirm the trend for rising prices, up to 452.80. On the downside, a breach of support at 10 DMA at 442.86 would strengthen the bearish momentum. This could also trigger losses towards the 440. Indicators point to higher prices, however, narrowing candle body suggests a diminishing appetite for further bullish momentum; we expect futures to edge higher today.

NY 2nd Month Coffee Futures

NY coffee futures surged higher on Friday as intraday trading caused prices to test resistance at 158.25 and then closed at 157.80. The stochastics remain neutral, and %K/%D is seen diverging on the upside, while the MACD diff is negative and is converging, outlining the improved outlook on the upside. Long candle body yesterday points to a strong appetite and could edge higher above 158.25, however, futures struggled above this level in the past, towards 159.30. On the downside, a break below the trend line could trigger losses towards 155.40. Momentum favours the upside, and we expect this to remain the case in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures surged higher on Friday as intraday trading saw prices break above 1650 resistance. The market closed at 1679. The RSI is rising marginally, and %K is trading in the overbought territory but is seen tailing off. The MACD diff converged on the upside, a strong buy signal. The indicators point to higher prices in the near term, and to confirm the rejection of resistance, prices need to take out 1700. A break below this level back towards 1650 would confirm the double top formation and a subsequent bearish momentum. A long candle body signals a strong appetite for higher prices, but the futures need to take out 1700 to confirm the outlook.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground on Friday as selling pressure prompted a close on the front foot at 2380. The RSI is rising, the %K/%D has converged on the upside once again, however, struggled to break out of the oversold area for the last couple of weeks. Likewise, the MACD diff negative but lacked the conviction to point out an outlook. The support above the 2350 and the bullish engulfing formation suggest higher prices towards 10 DMA at 2392, however, futures struggled above that level. The 10 DMA has provided robust resistance in recent sessions, and if futures can gain a footing above this level, we could see the bulls target 2400. On the downside, if support at 2350 does not hold, this could set the scene for lower prices to 2317. The indicators still favour the downside, and we expect this to remain the case today.

Ldn 2nd Month Cocoa Futures

Ldn cocoa held the nerve on Friday as intraday trading caused futures to close at 2249. %K/%D is neutral in the oversold, and the MACD is converging on the upside marginally, confirming market uncertainty around the price direction; this is confirmed by Friday’s spinning top formation. To maintain positive momentum, prices need to close above 10 DMA at 2261 and then target 2277. On the downside, the rejection of prices above 2250 could trigger losses back to the 38.2% fib level at 2211, the long-term support level. Buying pressure has been weak, and the indicators point to a continuation of lacklustre momentum. The break of resistance at 10 DMA could confirm the outlook for higher prices 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.

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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