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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 declined yesterday as intraday trading caused futures to break back below support at 18.61 and close at 18.57. The RSI is declining as the MACD diff lacks conviction and the DMI also lacks direction. The stochastics are neutral and we expect prices to consolidate in the near term. Robust resistance stands at 18 and we have seen futures rebound of this level in recent weeks. However, to confirm the descending triangle prices need to breach 18 and challenge the 50% fib level at 17.24.  On the upside, prices need to regain a footing above 19 to improve upside sentiment. We expect prices to edge towards 18 in the near term. 

 

Ldn 2nd Month Sugar Futures

London sugar futures declined yesterday as selling pressure prompted prices to test appetite below 490, futures were bid below this level and closed at 490.80. The indicators lack conviction and we expect futures to decline in the near term towards 481.50. The descending triangle is still intact but futures need to close below 481.50 in order to confirm the pattern. On the upside, futures need to close above the 40 DMA at 502.43. We expect prices to decline in the near term. 

 

NY 2nd Month Coffee Futures

NY coffee prices traded sideways yesterday as volumes were thin. The market closed at 228.80. The indicators are negative with the stochastics hovering above oversold. The MACD diff is negative and converging as prices hold above long term trend support. Prices have been supported at this level in recent months and we expect futures to push above 229.65. The market needs to close above the 40 DMA in order to regain upside momentum. The longer-term resistance level stands at 240 but we do not expect this to be tested in the near term. On the downside, resistance stands at the 40 DMA and this level has held firm and futures to decline in the near term. 

 

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged higher yesterday as intraday trading caused futures to close at 2376. The stochastics are overbought and the MACD diff lacks conviction but is positive. Buying pressure has caused futures rally in recent weeks but the gains are minimal and volumes this week have been weak so there is little conviction in the market. We expect this trend to continue with prices testing 2400 in the medium term. 

 

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground yesterday as buying pressure prompted a test of 2600, the market closed at 2586. The stochastics are rising towards overbought but 2600 has held firm in recent months prompting futures to decline back towards 2436. The inverted head and shoulders has been formed and in order to confirm this pattern, prices need to break above 2600 and target 2675 in the medium term. 

 

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures gained ground yesterday after prices tested appetite below the 61.8% fib level at 1719, the market closed at 1734. The MACD diff is positive and diverging as the stochastics are about to post a buy signal which could indicate higher prices in the near term towards 1750. Futures have rejected this level in recent months and this could trigger losses back towards 1700 in the medium term, however, we expect further gains in the near term. 

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