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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

Sugar prices consolidated the previous day's gains on Friday. Prices failed above 19.90 and this triggered a close at 19.78. The stochastics rising and are overbought as the MACD diff is also positive and diverging but the RSI lacks conviction. The consolidation on Friday and close above previous resistance could set the scene for higher prices through 20, before testing 20.38 which is a key level. A break of 20 would help to confirm an ascending triangle. On the downside, if the band of resistance holds firm, this could trigger losses towards the moving averages which have converged around 19.45-19.50. We expect prices to edge higher in the near term helping to confirm the bullish engulfing candle and ascending triangle. 

 

Ldn 2nd Month Sugar Futures

Futures edged lower on Friday as intraday trading saw prices close at 516.10. The stochastics are rising towards overbought, the MACD diff is positive and diverging helping to confirm the bullish engulfing candle and upside trend. The market struggles above 517.60 and to confirm the ascending triangle, prices need to break above 520 with the recent high at 523, before testing the tertiary level at 525. Failure to break above 520 would form a quadruple top and set the scene for a rejection of the ascending triangle, this could trigger losses through near term trend support, the 100 DMA and then the long term trend support. We anticipate momentum to remain on the front foot and test 520 in the coming days.

 

NY 2nd Month Coffee Futures 

Coffee prices surged higher on Friday as protracted buying pressure caused prices to break resistance at 217, and 220 to close on the front foot at 221.95. The stochastics are rising with the MACD diff is now positive and starting to diverge. The indicators helped to confirm the positive price action and the break above 217 was key to momentum and has confirmed the ascending triangle. Following the break of 220, prices could trigger a test of 2015s high at 228. The trend is firmly on the upside and this could trigger losses back towards 217 and 215. If support at these levels hold firm, we expect prices to rally once again. Momentum is on the upside and we expect this to remain the case. 

Ldn 2nd Month Coffee Futures 

Futures consolidated gains on Friday after prices failed above 2300 triggering a close at 2279. The stochastics are rising towards overbought and the MACD diff is positive and starting to diverge. To confirm the bullish engulfing candle and positive indicators futures need to hold above 2279 and then take out 2300. This would help confirm the reaffirmation of support at the 40 DMA and break above resistance at 2279. Conversely, if prices fail above 2279 this could set the scene for losses back to 2200 and 2179, helping to confirm the rejection of prices at 2300. A break below the 40 DMA would bring into play the lower trend channel. We expect the trend to remain intact but prices need to confirm the bullish engulfing candle to maintain momentum. 

 

NY 2nd Month Cocoa Futures 

Cocoa futures consolidated on Friday as prices were supported at the 100 DMA and closed at 2525. The stochastics are rising out of oversold and the MACD diff is crossing into positive territory, this could indicate a break of key resistance at 50% fib level at 2540, helping to confirm support at 2436. A break of the 50% fib level could set the scene for a test of 2600 in the near term. On the downside, if prices fail at the 50% fib level, this may set the scene for lower prices back towards the recent low. A breach of 2436 would indicate a lower higher lower low environment. We expect prices to edge higher in the near term towards 2600.

Ldn 2nd Month Cocoa Futures 

Prices failed to break above the 61.8% fib level on Friday triggering a close at 1703. The stochastics are rising and the MACD diff is converging suggesting improving sentiment. The rejection of prices at the 61.8% fib level could set the scene for lower prices through the 50% fib level at 1691. A break of this level would bring into play 1662 and the recent low, helping to confirm the hanging man candle. On the upside, the indicators are rising and this could trigger gains through the 61.8% fib level towards 1740 before testing 1753.8. 

 

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