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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 on Friday as buying pressure prompted a test of 18.57. The market closed at 18.34. The stochastics are decreasing in the oversold yet converging, and the MACD diff is negative and began to show signs of convergence, suggesting waning bearish momentum in the near term. The prices have been supported above the 38.2% fib level at 18.10 in the last couple of sessions. The fall below this level could trigger losses through 18.00 and 17.62. On the upside, a breach back above 18.57 would bring into play the recent firm resistance of 10 DMA at 18.94, confirming an inverse hammer formation. Futures need to take out the resistance at 19.00 in order to confirm the trend. The indicators and Friday’s candle formation point to an appetite for a trend change, but futures need to take out near term resistance at 18.57 in the near term to confirm this.

Ldn 2nd Month Sugar Futures

Ldn sugar futures opened above the previous candle’s close on Friday but edged lower during the day as prices closed at 485.30. The indicators continue to favour the downside, but %K is seen tailing off in the oversold, pointing to an end of selling pressures in the near term. The MACD is negative and converging. A break below the 480 level would bring into play 471.80. In order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 490.30 and then target the 10 and 40 DMAs of 497.53 in the near term. The bearish doji candle points to market uncertainty, with prices struggling to break higher. The 10 DMA breaking below the longer-term DMAs confirms the death cross, a strong selling pressure. If the futures are to confirm the indicators pointing to a reversal of trend, it needs to break above near term resistance.

NY 2nd Month Coffee Futures

NY coffee prices gained ground on Friday but a lack of appetite for prices above 244.75, triggering a close at 243.35. The %K/%D has converged on the upside, a strong buy signal, suggesting we could see prices improve in the near term. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and yesterday’s long candle body suggests we could see prices challenge 244.75 once again in the near term. In the medium term, futures need to hold above 248.20 to target the level at 250. On the downside, a break below the 10 DMA support level of 237.26 could trigger losses back to 230. Longer candle body and short wicks show that there is an appetite for higher prices. Futures struggled above 244.75, and a break above this level would confirm more upside momentum.

Ldn 2nd Month Coffee Futures

Ldn coffee futures gained ground on Friday, but struggled above the highs of 2327 once again to close at 2298. The stochastics are beginning to rise, with the %K/%D edging higher, as the MACD diff is negative and converging on the upside. This suggests we could see a further bullish momentum in the near term, with prices edging towards 2350 before testing the 2327 level. On the downside, the candle found support at 10 DMA at 2298, and if the prices break through this level, we could see prices retreat back through 40 DMA at 2209 to 2200. The bullish candle with a narrow body and long upper and lower wicks points to uncertainty to break out of the current support and resistance.

NY 2nd Month Cocoa Futures

NY cocoa futures increased marginally on Friday as trading saw prices close below 61.8% fib level of 2475 at 2467. The stochastics are seen diverging on the downside, with the %K/%D converging on the upside, a strong buy signal, and the MACD diff is negative and converging. A break of 2436 could trigger losses through 2400, with the tertiary level at 2360. On the upside, a break above 10 DMA at 2464 could set the scene for bullish momentum towards 2500. The spinning top formation has been formed, which points to market indecisiveness, however, a break above the current resistance would confirm further bullish momentum.

Ldn 2nd Month Cocoa Futures

London cocoa futures edged higher on Friday and managed to close above 1691 at 1696. The indicators suggest we could see higher prices in the near term. The stochastics have converged on the upside, the RSI is rising, and the MACD is negative and converging. On the upside, a break above the 200 DMA at 1707 could then test the 61.8% fib level at 1719. Superseding this level resistance stands at 1750. On the downside, if futures fail into 1662, then we could see futures break back below 1650. The 200 DMA firm resistance caps price potential, however, a break above this level could pave the way for higher prices in the near term.

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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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