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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 lost ground yesterday after prices found resistance at 10 DMA, prompting a close at 17.92. The stochastics are rising, with %K/%D rising out of the oversold territory, and the MACD diff is negative and converges, suggesting futures could rise further in the near term. Futures need to close above 10 DMA resistance at 19.71 and then target 18.57. On the downside, prices need to close below 17.66 before targeting 17.29. The bearish engulfing pattern suggests an impeding market downturn, but the indicators point to further upside momentum. Futures need to break above the 10 DMA resistance level to confirm this.

Ldn 2nd Month Sugar Futures

Ldn sugar edged lower as intraday trading caused futures to close above 10 DMA at 487.60. RSI is falling marginally, while %K/%D is diverging on the upside out of the oversold, confirming the strengthening of a positive trend in the near term. The MACD diff is about to converge on the upside, confirming the continuation of buying momentum. Prices need to close above 40 DMA at 496.81 and then target 100 DMA at 502.28. On the downside, the rejection of prices above 494 could trigger a breach below the 10 DMA level at 485.70 before targeting 481.50. Buying pressure failed below 10 DMA, and the indicators point to further upside potential. We expect the futures to strengthen in the near term.

NY 2nd Month Coffee Futures

NY coffee futures softened yesterday after prices failed above 242.50, prompting a close on the back foot at 236.95. The stochastics are rising and converging, with %K now falling out of the overbought, and the MACD diff is also converging on the downside, outlining waning buying pressure in the market. Futures struggled to break below the DMAs, but a breach of the 40 and 10 DMAs at 234.76 and 233.26, respectively. A break below these levels could set the scene for lower prices at 229.65. Alternatively, if prices can gain a footing back above 244.75, the bulls could then target 252.35 in order to regain upside conviction. We anticipate the price gains to stall and the trend to become more bearish.

Ldn 2nd Month Coffee Futures

Ldn coffee futures weakened yesterday as they broke below support at 2240 and closed at 2237. The stochastics continue to fall as they edge towards oversold, and the MACD diff just is negative and diverging on the downside. A break below 2210 would trigger losses to 100 DMA at 2198. Conversely, the appetite above 2240 would suggest higher prices and a close back above 2279 and 40 DMA at 2291. The break below the firm support level and bearish indicators, we expect further downside pressure.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher yesterday, breaking above resistance at 2640 and closing at 2649. The stochastics are trading in the overbought territory, and the MACD diff is positive and diverging, outlining recent bullish sessions. On the upside, futures need to break above 2655 in order to confirm upside momentum. The appetite for prices above this level could trigger gains towards the level at 2675; strengthening the trend in the long run on the upside. A break back below the current support at 2600 would bring into play the 10 DMA level at 2553, which could set the scene for 50% fib level support at 2540. We see prices edge higher in the near term, highlighted by recent bullish momentum and positive indicators, however, futures need to close above the current resistance to confirm the outlook for higher prices.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures strengthened yesterday as protracted buying pressure prompted a test of the 1770 level to close at 1760. The stochastics are diverging on the upside, as %K is now in the overbought territory. The MACD diff is positive and diverging. To confirm another bullish candle, futures need to close above 1770 and then target 1800. On the downside, the break below 61.8% fib level at 1719 could set the scene for lower prices towards the support of 50 and 200 DMAs at 1704. However, the market struggled below that level in recent sessions, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term.



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