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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 futures edged lower yesterday as intraday trading caused futures to test resistance at 20.38, this level held firm and the market closed at 19.89. The stochastics are topping out but are in overbought but the MACD diff is positive but losing its impetus on the upside. The rejection of resistance at 20.38 could trigger losses back to 19.44, where the moving averages are converging. Secondary support stands at 19. On the upside, futures held above previous trend resistance and if prices find support at this level we could see higher prices through 20.38. Secondary resistance stands at 21. 

Ldn 2nd Month Sugar Futures 

Selling pressure caused futures to break back below 517.60 and this triggered a close at 516. The stochastics are still trending higher but are starting to top out as the RSI and MACD diff are also positive. The MACD is diverging still but yesterday's trading and rejection of 525 and full candle on the downside could set the scene for lower prices back to 516. A breach of near term trend support would set the scene for lower prices to 494. On the upside, the bulls need to breach 525 to confirm the ascending triangle. This could trigger a breakout on the upside. However, we anticipate the market to reaffirm support in the near term. 

NY 2nd Month Coffee Futures

 

Coffee prices weakened yesterday as selling pressure caused futures to close at 229.15. The indicators are rising but the pressure is starting to wane. The MACD diff is positive and diverging as the stochastics are converging in overbought. We could see futures edge lower back towards 220 as selling pressure continues and the market reaffirms support. On the upside, the new high is at 238.35 and this is the level on the upside for futures to break out. Momentum is on the upside but we expect the market to edge lower in the medium term. 

Ldn 2nd Month Coffee Futures 

Futures rejected resistance at 2279 setting the scene for lower prices towards 2184. The market closed at 2212. The stochastics are falling towards neutral territory at 50, the MACD diff lacks conviction but is weakening. The market has failed into resistance at 2279 but in order to confirm the rejection of this level, futures need to break below the 40 DMA towards the lower trend channel. We expect the lower trend channel to hold firm. On the upside. futures need to hold above the 40 DMA at 2175 and this could set the scene for prices towards 2279. We could see futures to edge lower in the near term. 

NY 2nd Month Cocoa Futures 

Sentiment in the NY cocoa market has been strong with buying pressure prompting a test of resistance at 2600. The market closed at 2589. The stochastics are rising and the gap between them suggest strong momentum, the MACD diff is positive and diverging. A break of resistance at 2600 could set the scene for higher prices through 2675. The higher highs and lows indicate a strong trend but a rejection of prices at 2600 could trigger losses to 2567 before targeting the 50% fib level. We expect futures to push higher in the near term as buying pressure continues but 2600 is a key level. 

 

Ldn 2nd Month Cocoa Futures 

Cocoa prices broke above resistance at 1719 and closed on the front foot at 1725. The stochastics are rising and the MACD diff is positive and diverging, helping to confirm the positive sentiment. The close above the 61.8% fib level could set the scene for higher prices towards 1743 and then the 50 DMA at 1777. Conversely, lack of appetite for prices above 61.8% fib level could set the scene for lower prices to 1691. A breakthrough the recent low at 1662 could set the scene for lower prices and confirm the trend. However, momentum in the near term is on the upside and we expect this to remain the case. 

 

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