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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 weakened on Friday, as protracted selling pressure triggered a close on the back foot at 18.43. The stochastics have converged on the downside, and the RSI has also edged lower, sending a sell signal. The MACD diff is positive and converging. A bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 10 DMA support level at 18.40. This would confirm the trend for falling prices, down to 18.00. On the upside, resistance at 19.00 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 19.19. The break below 18.50 confirms growing selling pressures, and indicators point to lower prices in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened on Friday after finding support below 470. The market closed at 464.80. The stochastics are falling out of the overbought territory, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 10 DMA at 465.83. A break below this level would bring into play the 460 level, which could set the scene for trend support at 40 DMA at 458.04. On the upside, futures need to gain back above 470 – the previous day’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 478.80; 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 sold off sharply on Friday, as protracted selling pressure triggered a breakthrough of 10 DMA and 23.6% fib support level and closed on the back foot at 182.45. The stochastics are falling, with %K leaving the overbought territory, highlighting the recent selling pressure. The MACD diff is positive and converging, suggesting increasing downside pressures; this could set the scene for lower prices towards the 180.00 support level. A break below this would confirm the trend for falling prices, down to 170. On the upside, resistance at 210 has proven to be strong in recent sessions, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 212.40. A long candle body along with short wicks points to an increased appetite on the downside.

Ldn 2nd Month Coffee Futures

Ldn coffee futures sold off on Friday as lack of appetite for higher prices helped to close on the back foot at 1801. Stochastics are diverging on the downside, with %K/%D is leaving the overbought territory, suggesting further selling momentum in the near term. MACD diff is positive and converging, supporting the outlook for deteriorating prices. The last three days formed a three black crows pattern, a sign of an impending market downturn. The sell-off on Friday and a long lower wick suggest further selling pressure below the current support level, and the indicators support lower prices. A break below 1800 could set the scene for a test of support at 40 DMA at 1717. On the upside, support around 1906 would help reaffirm the bullish trend in the near term towards 2000. The indicators point to increasing selling pressures, and we expect further downside momentum. 

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower on Friday as prices closed at 2422. The indicators are beginning to favour the downside, as %K/%D are about converged on the downside, confirming growing selling pressures. The MACD is positive and converging. A break below 2400 would bring into play the 10 DMA support level at 2389. Prices have been relatively well supported below 100 DMA, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above this level and then target 2500 in the near term. The long bearish candles immediately after bullish doji candles points to a momentum change on the downside, with a growing appetite for lower prices. The break below 2400 would confirm the outlook for lower prices.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures softened on Friday after finding support above 2321. The market closed at 2328. The stochastics are converging on the downside, still in the overbought territory, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 100 DMA at 2298. A break below 10 DMA at 2297 would bring into play the 40 DMA at 2264 level, which could set the scene for 2250. On the upside, futures need to gain back above 2350 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 2388; this could strengthen the trend in the long run on the upside. The bearish candle after the doji candle confirms growing selling pressures 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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