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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 lower on the day, causing the market to close at 19.66. The stochastics are falling, with %K in the oversold, and the MACD diff is negative and remained unchanged for the last couple of days, struggling to point out an outlook in the near term. To confirm the outlook of higher prices, futures need to close back above 20.00 and then target 20.09. The 10 DMA is closing in and supporting prices on the upside. On the downside, a break below the 19.44 level could set the scene towards 19.00. The narrow candle body with long upper and lower wicks points to market uncertainty about the direction of the move, and the futures need to break above 40 DMA to confirm the outlook for higher prices.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher yesterday as intraday trading saw prices close at 499.20. The stochastics are converging on the upside, with the %K/%D about to cross near the oversold territory, and the MACD diff is negative and converging. A break of the 40 DMA level at 489.49 could trigger losses through 482.60, with the tertiary level at 480. On the upside, a break above 10 DMA at 501.66 could set the scene for bullish momentum. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 10 DMA, a break above this level would confirm the indicators for higher prices in the near term.

NY 2nd Month Coffee Futures

NY coffee futures softened yesterday after breaching the support of 40 DMA. The market closed at 184.45. The stochastics continue to soften, with %K in the oversold territory, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through the support of 180. A break below this level would bring into play the trend support at 178.30, which could set the scene for the 38.2% fib level at 174.74 in the longer term. On the upside, futures need to gain back above 40 DMA at 187.86 in order to confirm upside momentum. This could trigger further gains towards the 10 DMA at 191.08; strengthening the upside trend in the long run. A longer lower wick, where most of the trading took place in the upper ranges, points to an appetite for lower prices, however, prices need to break below the current support level to confirm the outlook.

Ldn 2nd Month Coffee Futures

Ldn coffee futures gained ground yesterday after prices found support at 2034 once again, this triggered a close at 2063. The stochastics are falling, and the MACD diff converged on the downside, suggesting we could see futures test support at 2034 once again, and this could prompt a break of this level, setting the scene for lower prices at 2000. On the upside, in order to confirm higher prices, futures need to close above the current resistance and 10 DMA at 2066. We expect prices to soften in the near term, as the 10 DMA resistance level remains robust.

NY 2nd Month Cocoa Futures

NY cocoa futures jumped higher yesterday as trading saw prices close above 10 DMA at 2656. The stochastics are seen converging on the upside, with the %K/%D still in the neutral territory, and the MACD diff is negative. A break of the 10 DMA at 2630 could trigger losses through the 38.2% fib level at 2601, with the tertiary level at 2534. On the upside, a break above 2675 could set the scene for bullish momentum towards the month high of 2726. The spinning top formation has been formed, which points to market indecisiveness, however, a jump above the resistance of 10 DMA points to an appetite for prices above that level.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged higher yesterday as moderate buying pressure triggered a close on the front foot at 2483. The RSI is falling, while %K/%D is diverging on the downside. The MACD diff is negative and diverging, outlining further market weakness. On the downside, a break below the key support level of 2450 could trigger losses back towards 2431, a break below the 40 DMA at 2418 would confirm the outlook of lower prices in the longer term. On the upside, a break above the 10 DMA at 2493 could trigger gains through 2500 towards trend resistance. A close near the highs points to more certainty in the bullish momentum, however, as prices struggle above 10 DMA, gains are capped on the upside.

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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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