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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 gained ground yesterday as intraday trading prompted prices to test resistance at 19.76, the market closed at 19.72. The stochastics have overbought but are topping out as the MACD diff is converging. The RSI is rising but in order to confirm the outlook of higher prices and the reaffirmation of support at the 40 DMA, futures need to break above 19.76 and 20 before targeting 20.38. The longer-term trend is firmly on the upside and a break above 19.76 would help to confirm a near term ascending triangle. On the downside, over the last 3 months, we have seen lower highs and lower lows and a rejection of trend resistance would set the scene for lower prices. 

 

Ldn 2nd Month Sugar Futures 

Ldn sugar prices recovered some of the previous day's losses yesterday as intraday trading caused prices to close at 513.60. The stochastics are rising and are approaching oversold but the MACD diff is positive and diverging while the RSI is neutral. Futures remain above the moving averages and trend resistance, suggesting we could see prices break resistance at 517.60. An ascending triangle has been formed and a break above 523 would confirm this pattern. On the downside, the rejection of 517 may set the scene for lower prices through trend support towards the 100 DMA. We anticipate momentum to remain on the upside but momentum is waning.

 

NY 2nd Month Coffee Futures 

Coffee prices edged lower yesterday as prices consolidated recent gains and closed at 224.50. The indicators are bullish and this could see the scene for higher prices through the recent high. The MACD diff is positive and diverging, confirming sentiment in the market. The recent buying pressure is strong and the break above 220 has helped to confirm, resistance stands at 228 but we could see futures reaffirm support at 220 in the near term. If this level holds firm this would help to confirm the trend. Conversely, a break of this level may set the scene for a test of 209 and the 100 DMA at 206.64. We expect futures to maintain momentum. 

Ldn 2nd Month Coffee Futures 

Futures weakened yesterday as selling pressure triggered a close at 2237. The stochastics are converging and set to give a sell signal as the MACD diff also converges. The upside tails and failure above resistance at 2279 indicate lower prices, a breakthrough the 10 DMA and 2200 would confirm the shooting star candle. We would expect support around the 100 DMA to hold firm keeping the trend intact. On the upside, futures need to hold above 2200 and then take out the recent high at 2313 to regain upside momentum. We expect prices to edge lower in the near term. 

 

NY 2nd Month Cocoa Futures 

Cocoa futures gained ground on Friday as intraday trading caused futures to break above the 50% fib level and close at 2553. The stochastics are rising and indicate higher prices in the near term, however, futures need to breach resistance at 2567 before targeting 2600. The MACD diff is positive and diverging suggesting renewed strength in the market. On the downside, lack of appetite above the 50% fib level resistance at 2567 could trigger losses back towards the 200 DMA. We expect the future to edge higher in the near term. 

 

Ldn 2nd Month Cocoa Futures 

Cocoa prices recovered from early losses to close back above 1700 at 1705. The stochastics are rising and are now in positive territory, as the MACD diff divergers on the upside. The positive indicators in conjunction with the recovery below the 50% fibre level would set the scene for higher prices through 1719 towards 1743. On the downside, a rejection of prices at 1720 could set the scene for lower prices through 1650 in the medium term.

 

 

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