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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 edged lower on Friday after prices broke below the 18.00 support, prompting a close at 17.80. The stochastics are falling, with %K/%D diverging on the downside and now oversold, and the MACD diff is negative and diverging, confirming the outlook on the downside. To confirm the bearish indicators and rejection of prices above 18.00, futures need to take out 17.66 before 17.29. On the upside, futures need to close back above 18.00 and then test 10 DMA at 18.42 in order to confirm the outlook of higher prices. A longer candle body alongside a longer upper wick indicates that traders might be settling into the support level. And while the stochastics are diverging on the downside, the %K is in the oversold, so we would expect to see a trend reversal in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures broke below the support of 481.50 on Friday as prices closed at 479.80. The stochastics are falling, with %K/%D diverging on the downside in the oversold territory. The MACD is negative and diverging. The rejection of higher prices may prompt a complete break below the support at 477, a subsequent breach of this level could trigger losses towards 471.80. On the upside, a break of 481.50 may prompt futures to retest last week’s highs at 494.40. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Longer upper wick points to waning selling pressures and a possible confirmation of support at these levels. The oversold indicators confirm a change of trend in the near term.

NY 2nd Month Coffee Futures

NY coffee futures gained ground on Friday as protracted buying pressure prompted a breach of the 40 DMA level for the first time in weeks to close on the front foot at 238.30. The stochastics are rising, and the %K/%D is seen diverging on the upside towards the oversold. The MACD diff converged on the upside, a strong buy signal. To confirm the bullish candles, futures need to break above 240 and then target 244.75. On the downside, the break back below 40 DMA at 233.14 could set the scene for lower prices towards the support of the 10 DMA level at 229.35. A strong candle body that broke above 40 DMA alongside bullish indicators point towards further strengthening in the near term.

Ldn 2nd Month Coffee Futures

Lnd coffee futures edged marginally higher on Friday, but the bullish momentum was not strong enough to break above 10 DMA, and futures closed at 2316. The stochastics continue to fall, yet seen converging, as %K is seen tailing off near oversold territory, and the MACD diff is negative and diverging. The rejection of prices at 10 DMA at 2344 has formed a candle with a narrow body but a long wick on the upside, suggesting markets lack of appetite for higher prices. If prices were to break above this level, this could trigger a test of 2381, the recent highs. To confirm the shooting star formation, futures need to take out 40 DMA at 2292 and then robust support at 2279. A break below this level would confirm the outlook for lower prices.

NY 2nd Month Cocoa Futures

NY cocoa advanced on Friday as protracted trading caused futures to break above all moving averages, the market closed at 2550. The stochastics are rising, and %K/%D is seen converging on the upside, confirming a strengthening of bullish momentum. The MACD diff flipped back into the positive territory. To maintain positive momentum, prices need to close above 2567 and then target resistance at 2600. On the downside, the rejection of prices above that level could trigger losses back to the 61.8% fib level at 2475 before targeting 2436. The strong bullish candle body and indicators pointing to growing bullish momentum are driving our belief that the prices will strengthen in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures rallied on Friday as protracted buying pressure triggered a close on the front foot at 1729. The RSI is rising, while %K/%D stochastics have converged on the upside and given a buy signal. The MACD diff is negative and converging, confirming waning selling pressures. On the upside, finding support above 1719 could trigger gains through to 1750– recent highs On the downside, rejection of prices above the 61.8% fib level could trigger losses back towards the 50 DMA. The tertiary levels is 1680 and a break here could trigger losses back towards 38.2% fib level at 1662 in the medium term. The futures have been fluctuating around the moving averages in the last couple of weeks, but a strong bullish candle and bullish engulfing formation points to further bullish outlook is on the horizon.



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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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