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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 held their nerve on Friday as intraday trading saw futures test appetite at 18.82. This level held firm, and the future closed at 18.74. The stochastics are falling, with %K seen tailing off in the oversold, and the MACD diff is negative and beginning to converge, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 100 DMA at 18.95, which could set the scene for futures to take out 19.10 and 10 DMA at 19.15. On the downside, the market needs to take out support at 18.64 and then support at 18.31. The 100 DMA level has provided firm resistance on the upside, and futures needs to break above it to confirm the indicators’ outlook for a change of trend in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened on Friday but struggled, piercing the support level of 493.90. The market closed marginally higher at 494.90. The stochastics are falling, with %K seen converging in the oversold territory, and the MACD diff is negative and converging, paving the way for higher prices in the near term. The appetite above 500 could set the scene for higher prices back to test the 10 DMA level at 503.78. On the downside, futures need to break below the support of 493.90 in order to confirm the bearish trend. The 10 DMA level has crossed below the 40 DMA, but the indicators point to a change of momentum in the near term. Futures need to take out 493.90 to confirm bearish momentum.

NY 2nd Month Coffee Futures

NY coffee futures weakened on Friday as futures tested the resistance at 10 DMA and closed at 202.60. The stochastics continue to fall as they edge towards oversold. The MACD diff is negative and diverging, pointing to growing selling pressure. A break below 200 would confirm the outlook for lower prices to 40 DMA level at 197.27 with the tertiary level at 190. Conversely, the appetite above 10 DMA at 208.17 and 209.65 respectively would suggest higher prices and a close above 210. Friday’s candle body being below the previous day’s one suggests an appetite for lower prices, and the indicators are pointing to a further fall in prices in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures gained marginal ground on Friday as moderate buying pressure triggered a close on the front foot at 2141. The RSI is rising, and %K/%D is diverging on the upside. The MACD diff is negative and converging on the upside, suggesting growing buying pressure. The indicators point to higher prices in the near term, and to confirm this trend, prices need to take out a robust resistance at 2173. A break above this level towards 2200 would confirm the strong bullish momentum. Conversely, an appetite for prices below 40 DMA at 2108 could trigger a test of support at 2100. Longer upper wick points to increased appetite on the upside, and a break above 2173 would confirm the outlook for higher prices.

NY 2nd Month Cocoa Futures

NY cocoa strengthened on Friday, as protracted buying pressure triggered a close on the front foot at 2629. The stochastics are oversold, but %K/%D is about to converge on the upside. The MACD diff is negative and converging. A bullish candle with a longer lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 10 DMA at 2643. This would confirm the trend for rising prices, up to 40 DMA at 2655 and 2675. On the downside, a breach of support at 2600 would strengthen the bearish momentum. This could also trigger losses towards the 50% fib level at 2534. Indicators are pointing to higher prices, and if futures break above the near term resistance, we would expect to gain positive momentum in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures weakened during the day on Friday after breaking the resistance of 1770. The market closed at 1777. The stochastics continue to soften, but %K is seen converging on the upside, and the MACD diff is negative and converging, suggesting we could see higher prices in the near term through trend resistance at 1796. A break above this level would bring into play 1800, which could set the scene for resistance at 1850 in the longer term. On the downside, futures need to weaken back below 1770 in order to confirm downside momentum. The reaffirmation of resistance here could trigger losses towards the level at 1750. Longer lower wick, where most of the trading took place in the upper ranges, points to appetite on the upside; however, prices struggled above trend resistance; the futures need to take out this level to confirm the sentiment for higher prices.

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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