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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 failed above trend resistance yesterday as intraday trading caused futures to close at 18.67. The stochastics strengthened, with %K/%D diverging on the upside towards the overbought, and the MACD diff is diverging on the upside, suggesting further rising pressures. The rejection of prices at 18.73 has formed a candle with a narrow body and a long wick on the upside, suggesting an appetite for higher prices, however, lacking the conviction to break above the near term resistance. If prices were to break above 18.73, this could trigger a test of 19.00 and then 100 DMA at 19.24.The futures need to take out 40 DMA at 18.63 and then robust support at 18.57. The shooting start formation has been formed but the indicators need to confirm the change of trend before we can see prices edge lower.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened marginally yesterday as trading saw futures test appetite at trend resistance. This level held firm, and the future closed at 500.50. The stochastics are showing signs of convergence, with %K/%D converging on the downside in the overbought. Likewise, the MACD diff is positive, but the divergence is slowing. To confirm the outlook for higher prices, futures need to break above trend resistance at 507.64, which could set the scene for futures to take out the 510. On the downside, the market needs to take out support at 500 and then the 40 DMA at 494.80. The bearish engulfing pattern and a candle with a longer upper wick point to a change of trend on the downside in the near term.

NY 2nd Month Coffee Futures

NY coffee futures softened yesterday after finding resistance at 244.75. The market closed at 243.80. The stochastics are gaining ground in the overbought territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through near term resistance. A break above 244.75 would bring into play the 250 level, which could set the scene for 252.35. On the downside, futures need to break below 10 DMA at 238.70 in order to confirm downside momentum. The appetite below that level could trigger losses towards the 40 DMA level at 235.73; this could strengthen the trend in the long run on the downside. The hanging man formation to an end of the uptrend, however, short candle body signals uncertainty about the change of trend.

Ldn 2nd Month Coffee Futures

Ldn coffee strengthened yesterday, as moderate buying pressure triggered a close on the front foot at 2227. The stochastics are rising out of the oversold, with %K/%D just converged on the upside, the strong buy signal. The MACD diff is negative and converging. A bullish candle with a longer lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the 10 DMA resistance at 2245. This would confirm the trend for rising prices, up to 2279. On the downside, a breach of support at 2210 would strengthen the bearish momentum. This could also trigger losses towards 2200. Indicators are showing a change of the trend on the upside, and if futures break above the trend resistance, we would expect to gain positive momentum in the near term. 

NY 2nd Month Cocoa Futures

Prices weakened yesterday as marginal selling pressure triggered a close at 2702. The MACD diff is positive and converging. The stochastics are rising in the overbought territory, showing signs of convergence. In order to confirm the recent trend, prices need to break 2726 and then 2750. Conversely, to confirm the previous shooting star candles and confirmation of resistance at 2726, the market needs to break below 2675. This would bring into play 2653.

Ldn 2nd Month Cocoa Futures

Ldn cocoa weakened yesterday as moderate selling pressure triggered a close below the 1800 support level; the market closed at 1799. The stochastics are rising and about to converge on the downside in the overbought. The MACD diff is positive and converging. In order to confirm the bearish trend, prices need to break below the current support of 61.8% fib level at 1767 and then 1750. Conversely, a break above the 76.4% fib level resistance line at 1813 could set the scene for a test of 1837. We expect prices to continue to weaken in the near term.

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Disclaimer

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