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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 prices weakened on Friday as protracted selling pressure triggered a close below the trend support level at 20.47; the market closed at 20.32. The stochastics are falling, with %K/%D diverging on the downside, and the MACD is negative and diverging, suggesting further selling pressures. The dip has been well bid after market uncertainty in the last couple of sessions, breaking out of the narrow trading range, but in order to confirm the outlook for lower prices, futures need to break below the current support at 20.14 for a test of 20.00. Conversely, a break above the 20.74 resistance line could set the scene for a test of 21.00. The indicators point to further downside momentum, however, in order to confirm that, the futures need to break below 20.14 robust support level in the near term.

Ldn 2nd Month Sugar Futures

Lnd sugar futures failed above the previous day’s highs on Friday as intraday trading caused them to close at 506.70. The stochastics are rising, with %K/%D diverging towards the overbought; the MACD, however, the diff is negative and diverging, painting a mixed picture. The rejection of prices at 510 once again has formed a candle with a short body but a longer lower wick, confirming a lack of appetite for higher prices. If prices were to break back above Tuesday’s highs of 512.90, this could trigger a test of 519.90 and then 520. To confirm another bearish candle, futures need to take out 10 DMA at 503.26 and then support at 500. A break below this level would confirm the outlook for lower prices.

NY 2nd Month Coffee Futures

NY coffee futures edged lower on Friday as prices closed at 193. The indicators begin to favour the downside, as %K/%D just converged on the downside below the overbought, confirming growing selling pressures. The MACD is positive and converging. A break below the 10 DMA level at 191.29 would bring into play the 23.6% fib support level at 191.22. 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 199.63 and then target the 204 in the near term. The repeat of short bearish points to market uncertainty below the current support level, however, the open prices being below the previous day’s close suggest a growing appetite for lower prices. The break below the 10 DMA would confirm the outlook for stronger bearish momentum. 

Ldn 2nd Month Coffee Futures

Ldn coffee futures held their nerve on Friday as intraday trading saw futures test appetite at 2080. This level held firm, and the future closed at 2059. The stochastics are beginning to fall, with %K/%D converging on the downside in the overbought, and the MACD diff is positive and converging, signalling growing selling pressures. To confirm the outlook for lower prices, the market needs to take out support at 2030 and then 2000. On the upside, a break above the resistance at 2092 could set the scene for futures to take out the 2100 level. A positive doji candle after the bearish one signals uncertainty about the outlook for prices, and the futures need to take out the near term support to confirm the downside momentum.

NY 2nd Month Cocoa Futures

NY cocoa strengthened on Friday, as protracted buying pressure triggered a close on the front foot at 2654. The stochastics are rising, with %K/%D is diverging on the upside towards the overbought. The MACD diff is negative and converging. A long bullish candle body with a long upper wick suggests appetite for higher prices, but bears persevered during the sessions.; this could set the scene for prices to break revert back to 38.2% fib level at 2601. This could also trigger losses towards 10 DMA at 2588. On the upside, a breach of resistance at 2675 would strengthen the bullish momentum. This would confirm the trend for rising prices, up to 2700, the August highs. Indicators point to higher prices, but with a candle with a longer upper wick, we could see prices struggle above that level. 

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures softened on Friday after finding resistance at 2513. The market closed at 2498. The stochastics are gaining ground towards the overbought territory, and the MACD diff is negative and converging, suggesting we could see higher prices in the near term through trend resistance. The reaffirmation of support here could trigger gains towards the level at 2531; this could strengthen the trend in the long run on the upside. On the downside, a break below 10 DMA at 2458 would bring into play the 2453 level. An open above the previous day’s close points to an appetite for higher prices, but a short candle body indicates market uncertainty about prices above the trend resistance. 



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