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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 strengthened yesterday, as protracted buying pressure triggered a close on the front foot above 10 DMA 19.03 at 19.26. The stochastics are rising, %K/%D is diverging on the upside out of the oversold. The MACD diff is negative and converging. Another bullish candle with a longer body suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 19.50. This would confirm the trend for rising prices, up to 40 DMA at 19.67 and then 20.00. On the downside, a breach of support at 100 DMA at 18.98 would strengthen the bearish momentum. This could also trigger losses towards the 18.64. Indicators point to higher prices, and we expect futures to strengthen in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures consolidated yesterday as buying pressure prompted a close above the resistance at the 10 DMA, triggering a close at 504.60. The stochastics are on the rise, with the %K/%D converging on the upside in the oversold territory, outlining the improvement in positive sentiment. The MACD is negative and converging, supporting the outlook for growing buying pressure. In order to confirm another full candle on the upside and the positive indicators, prices need to take out 40 DMA at 505.91 today, which could pave the way for a test of 510 resistance level. On the downside, a break below 500 could trigger further losses towards the 493.90. A breach of this level would confirm the downside trend. A close back above recent highs today would regain upside conviction and pave the way for further gains.

NY 2nd Month Coffee Futures

NY coffee gained ground yesterday as buying pressure triggered a close on the front foot at 210.70. The stochastics are about to converge on the upside, as the MACD diff is negative and converging, signalling a buy trend in the near term. This suggests we could see higher prices towards the resistance of 220, but the market needs to take out immediate trend resistance at 217.85 beforehand. On the downside, if the support around 100 DMA at 207.43 is robust in taken out, we could see prices retreat back through to 200 to 40 DMA at 197.87. Longer upper wick on Tuesday points to the appetite for higher prices, however, futures need to take out 217.85 in order to confirm the outlook on the upside.

Ldn 2nd Month Coffee Futures

Ldn coffee futures rallied yesterday, reaching August 2017 highs, and managed to close just below the resistance of 2279 at 2270. The stochastics are rising into the overbought, with %K/%D diverging on the upside, and the MACD diff just converged on the upside, prompting further buying pressure. We expect futures to remain supported in the near term, with near term resistance at 2279 and secondary level at 2300 if buying pressure persists. On the downside, if futures fail above the near term resistance, then we could see a break back below 2200 before 2173. We expect futures to remain elevated in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower yesterday, causing the market to close at 2618. The stochastics are rising out of oversold, but %K is seen tailing off once again, while the MACD diff is negative and converging, suggesting higher prices in the near term before some upside correction. To confirm the outlook of higher prices, futures need to close completely above 10 DMA at 2625 and then target 40 DMA at 2658. The 40 and 10 DMAs are closing in and supporting prices on the upside. If these levels hold firm, this could set the scene for lower prices at 2600 and then 2557. The narrow candle body with longer wicks points to market uncertainty about further downside momentum, and the futures need to break out of current support to confirm the near-term outlook.

Ldn 2nd Month Cocoa Futures

Prices weakened yesterday as moderate selling pressure triggered a close below trend resistance; the market closed at 1768. The stochastics are falling moderately; %K/%D is edging lower in the oversold. The MACD is negative and converging, but the doji candle formation supports market indecisiveness. Prices have been trading in a narrow range between 1750 and trend resistance, and in order to confirm the change of momentum, prices need to break above the current resistance and then 1800 before 1810. Conversely, a break below the support at 1750 could set the scene for a test of 100 DMA at 1730. We expect prices to soften today and remain on the back foot.

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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