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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 resistance below 10 DMA once again. The market closed at 20.34. The stochastics are falling out of the overbought territory, and the MACD diff is negative and converging, suggesting we could see lower prices in the near term through the support of 10 DMA at 15.11. A break below this level would bring into play the 15.00 level, which could set the scene for trend support at 14.90. On the upside, futures need to gain back above 10 DMA at 20.46 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 20.94 – the previous week’s highs; this could strengthen the trend in the long run on the upside. The futures have struggled to break above the resistance in the last couple of sessions, but a stronger bearish candle and the indicators point to downside momentum in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures held their nerve yesterday, causing the market to close at 500.40. The stochastics are falling, with %K/%D diverging on the downside, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the outlook of higher prices, futures need to close back above 501 and then target 10 DMA at 504.57. The 10 DMA is closing in and supporting prices on the upside. However, a break above that level could set the scene for 508. On the downside, a break below 493.90 could set the scene for 490.30, the recent lows. The narrow candle body with longer lower wicks points to more appetite on the upside, but the futures need to break out of current resistance to confirm the near-term outlook.

NY 2nd Month Coffee Futures

NY coffee futures gained ground yesterday as buying pressure triggered a close on the front foot at 188.00. The stochastics are rising with the %K/%D in the neutral territory, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards 190, but the market needs to take out immediate resistance of 23.6% fib level at 189.16. On the downside, the candle found support at 10 DMA at 184.16, and if the prices break through this level, we could see prices retreat back through the 38.2% fib level at 181.43 before 180. The candle formed a double top formation, however, a break above the near term resistance could set the scene for higher prices in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged higher yesterday as trading saw prices test 1996 resistance. The market closed at 1994. The RSI is rising, and %K/%D is diverging on the upside in the overbought. The MACD diff is positive and diverging, suggesting growing buying pressure. The indicators point to higher prices in the near term, and to confirm the rejection of the resistance; prices need to take out 1996, the July highs. A break above this level towards 2000 would reject the double top formation and a subsequent bearish momentum. Conversely, an appetite for prices below the 1948 level could trigger a test of 1906. A candle with a long lower wick after the three white soldiers formation signals appetite for prices above the current resistance level, but this level has been robust, and a break above would confirm further bullish momentum.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot at 2623. The stochastics are falling but converging, with the %K seen edging higher; meanwhile, the MACD diff is negative and lacks the conviction to point out an outlook. The indicators point to a mixed outlook, and to confirm another bullish candle, futures need to break above 2650 before the 2665 level. On the downside, the candle found support at 10 DMA at 2610, and if the prices break through this level, we could see prices retreat back through 2600 before 2590. The three white soldier formation is a bullish signal, but futures need to take out 2650 in order to confirm the outlook on the upside.

Ldn 2nd Month Cocoa Futures

Ldn cocoa strengthened yesterday, as intraday buying pressure triggered a close below near term resistance at 2462. The stochastics are falling, yet converging, with %K/%D is converging on the upside. The MACD diff is negative and diverging. A narrow bullish candle body with a long lower wick suggests marginal appetite above 10 DMA at 2460; this could set the scene for higher prices to break above the resistance at 2488, but prices struggled above that level. On the downside, a breach of support at 2450 would strengthen the bearish momentum. This could also trigger losses towards 2431. Indicators point to higher prices, and a break of the near term resistance could strengthen the momentum on the upside.

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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