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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 gained ground yesterday as buying pressure triggered a close on the front foot at 19.29. The stochastics are rising with the %K/%D diverging on the upside, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards 40 DMA at 19.52, but the market needs to take out immediate resistance of 19.44. On the downside, the candle found support at 10 and 100 DMA 19.02, and if the prices break through this level, we could see futures retreat back through the 18.64 before 18.31. However, the market was well supported above that level in recent weeks, and the firm support at DMAs suggests a lack of appetite below, and we expect prices to strengthen in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures strengthened marginally yesterday as moderate buying pressure triggered a close below 40 DMA at 501.40. The RSI is rising, while %K/%D diverging on the upside. Likewise, the MACD diff is negative and converging, confirming growing buying pressures. On the upside, appetite above the 40 DMA at 505.38 could trigger gains through 510 towards 517.60 and 520, the recent highs. On the downside, a break below the 10 DMA at the 500.04 level could trigger losses back towards 493.90. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer upper wick signals that the buying pressure is growing, and the bullish outlook is on the horizon.

NY 2nd Month Coffee Futures

NY coffee futures edged lower yesterday as prices closed at 210.85. The indicators continue to favour the upside, with %K/%D diverging on the upside and MACD diff negative and converging, suggesting growing buying pressures. A break below the 209.65 would bring into play the recent sessions’ support level at 10 DMA at 206.87. Prices have been well supported above the trendline, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 211.75 and then target the recent highs of 217.85 in the near term. The hanging man candle formation suggests that while there was a softness during the day, the buyers had an appetite for higher prices. The close above the resistance level of 209.45 helped confirm this.

Ldn 2nd Month Coffee Futures

Lnd coffee futures failed above 2279 as intraday trading caused futures to close at 2234. The stochastics continue to strengthen towards the overbought, but seen converging, and the MACD diff lacks conviction. The rejection of prices at 2279 has formed a candle with a narrow body but a longer wick on the downside, suggesting a lack of appetite for higher prices. If prices were to break above this level, this could trigger a test of 2300. On the downside, futures need to take out 10 DMA at 2196 and then robust support at 2173. A break below this level would confirm the outlook for lower prices.

NY 2nd Month Cocoa Futures

NY futures sold off yesterday as selling pressure prompted a break below the support at 2534. The market closed at 2507. The stochastics are falling, with %K/%D diverging on the downside towards the oversold. The MACD diff is negative and diverging, confirming the appetite for lower prices. Yesterday’s full candle suggests a strong appetite for lower prices, and we could see futures continue to edge lower in the near term down past 200 DMA at 2506 if these pressures persist. Secondary and tertiary supports stand at 61.8% fib level at 2466 and trend support at 2440. Conversely, support around 200 DMA could set the scene for higher prices back to the 50% fib level at 2534. A break above that level would help to gain upside conviction. We believe that there is an appetite for lower prices in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa weakened for the sixth straight day yesterday, as protracted selling pressure triggered a close on the back foot at 16.90. The stochastics and the RSI are falling in the oversold. The MACD diff is negative and diverging on the downside. Another full bearish candle suggests continued strength in selling pressures; this could set the scene for lower prices to break below the 38.2% fib level at 1662. This would confirm the trend for falling prices, down to 1650. On the upside, resistance at 61.8% fib level at 1719 and 100 DMA at 1735 need to be breached in order to strengthen the bullish momentum. This could also trigger gains towards 17.50. A strong bearish pattern in recent sessions suggests further market correction, and we expect prices to continue to fall in the near term.

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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