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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 yesterday after finding support above 18.00. The market closed at 18.08. The stochastics are gaining ground towards overbought territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through the resistance of 18.15. A break below 18.00 would bring into play the 17.87 level, which could set the scene for 10 DMA at 17.73. On the upside, futures need to gain back above 18.53 – the previous weeks’ high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 18.64; this could strengthen the trend in the long run on the upside. The hanging man formation, where there was some sell-off during the day, points to an end of the uptrend, however, the short candle body points to market uncertainty about the change of trend.

Ldn 2nd Month Sugar Futures

Ldn sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 464.70. This level held firm, and the future closed at 461.60. The stochastics are rising, and the MACD diff is diverging on the upside, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the trend resistance at 466, which could set the scene for futures to take out the 470 level. On the downside, the market needs to take out support at 40 DMA at 457.11 and then support at 10 DMA at 455.46. The 10 DMA level crossed below 40 DMA recently but is seen crossing back above it, and with a longer upper wick on Thursday, confirming the appetite for higher prices.

NY 2nd Month Coffee Futures

NY coffee futures skyrocketed in recent sessions, and yesterday, the protracted buying pressure triggered a close on the front foot at 196.60, the highest level since November 2014. The RSI is rising, and while %K/%D are diverging on the upside, both are oversold. The MACD diff is positive and diverging, outlining the recent market rally. On the downside, a break back below the support level of 180 could trigger losses back towards 168.65, break below the 10 DMA at 163.15 would confirm the outlook of lower prices in the longer term. On the upside, a break above 197 could trigger gains through trend resistance towards 200. The market rally has been strong, with three white soldiers formation confirming the strength of bull sentiment. We could see prices trend even higher today, confirmed by long candle bodies and low upper and lower wicks.

Ldn 2nd Month Coffee Futures

Ldn coffee futures surged higher yesterday as protracted buying pressure caused prices to test resistance at 1900 and then closed at 1889. The stochastics are rising and have edged up further into the oversold area, and the MACD diff is positive and is diverging, outlining the improved outlook on the upside. Long candle body yesterday suggests an appetite for higher prices above the immediate resistance at 1900 before targeting 1906 in the medium term – the October 2017 highs. On the downside, a break above the 1845 level could trigger losses towards the support level at 1765. In order to confirm the outlook for a continued bullish trend, prices need to close above 1900. Momentum favours the upside, and we expect this to remain the case in the near term.

NY 2nd Month Cocoa Futures

NY cocoa strengthened yesterday, as buying pressure triggered a close on the front foot at 2361. The stochastics are falling, yet converging, with %K/%D converging on the upside. The MACD diff just converged on the upside, a strong buy signal. Long bullish candle body with short upper wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 10 DMA at 2360, but prices struggled above that level. This would confirm the trend for rising prices, up to the 40 DMA at 2388. On the downside, a breach of support at 2317 would strengthen the bearish momentum. This could also trigger losses towards 2300. Indicators point to higher prices, but with prices failing above current resistance, futures are capped on the upside.

Ldn 2nd Month Cocoa Futures

London futures gained ground yesterday as protracted buying pressure prompted a breach of a 10 DMA resistance level at 2241 to close on the front foot at 2245. The stochastics are rising, and the %K/%D are converging, suggesting a buy signal in the near term. The MACD diff is also seen diverging on the upside. To confirm the bullish candle, futures need to break above the 40 DMA at 2258 and then target 2300. On the downside, the break below the 38.2% fib level at 2211 could set the scene for lower prices towards the support of 2200. However, the market was well supported above that level in recent weeks, and the indicators suggest a strong buy signal. A breach of 10 DMA resistance suggests appetite above the level, and we expect prices to firm in the near term.

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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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