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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 softened yesterday after the candle opened below the previous day’s close. The market closed lower at 18.68. The stochastics are falling, with %K/%D diverging on the downside out of the overbought territory, and the MACD diff is positive and converging, paving the way for lower prices in the near term. On the downside, futures need to break below the support of 100 DMA at 18.64 in order to confirm further downside impetus. A break below this level could trigger losses to 40 DMA at 18.21. Alternatively, the reaffirmation of support at 100 DMA could set the scene for higher prices back to test the 10 DMA level at 18.97, and a break above this would help fill in the gap created by yesterday’s performance. The indicators point to further downside momentum, but futures need to break below 40 DMA support to confirm this.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened yesterday after piercing the support level of 10 DMA. The market closed lower at 512.90. The stochastics are falling, with %K/%D just diverging on the downside, and the MACD diff is positive and converging. The appetite back above 10 DMA at 516.15 could set the scene for higher prices back to test the 520, confirming the hammer formation. On the downside, futures need to break below the support of 510.70 in order to confirm the bearish trend. Indeed, the 10 DMA support level has been robust in the last couple of weeks, but a recent break below this level would suggest strong conviction on the downside in the near term.

NY 2nd Month Coffee Futures

NY coffee futures weakened yesterday as a lack of appetite for prices above 220 triggered a close at 211.15. The stochastics are falling, and %K/%D are seen diverging on the downside in the oversold territory. The MACD diff is starting to weaken, supporting the outlook for lower prices. A break of 209.65 support may pave the way for lower prices to the 38.2% fib level at 207.85 before 200. On the upside, if prices can take out 220 and then 10 DMA at 223.89, this would confirm the change of trend. Indicators are falling, but with stochastics being oversold, we are likely to see a reversal of trend in the near term. To confirm this, the support at 210 needs to hold today.

Ldn 2nd Month Coffee Futures

Ldn coffee futures softened yesterday as it tested the support level of 10 DMA once again. The market closed higher at 2081. The stochastics are rising, with %K/%D showing signs of convergence on the downside, and the MACD diff is positive, but the upside momentum stalled. On the downside, futures need to break below the support of 10 DMA at 2071 in order to confirm the growing selling pressures. Indeed, the 10 DMA support level has been tested marginally for the last couple of sessions, and a break below this level would confirm the downside impetus. On the upside, appetite above the 23.6% fib level of 2137 could set the scene for higher prices back to test the 40 DMA level at 2178. The indicators point to stalling buying pressures, but the market needs to break below the 10 DMA in the immediate term to confirm the outlook on the downside.

NY 2nd Month Cocoa Futures

NY cocoa sold off sharply yesterday, as protracted selling pressure triggered a breakthrough of 10 and 100 DMA support levels and a close on the back foot at 2522. The stochastics are falling, with the %K/%D converging on the downside and now declining, and the RSI has also edged lower. The MACD diff just flipped into negative territory, a strong sell signal; this could set the scene for lower prices past trend support at 2500. A break below this would confirm the trend for falling prices, down to 2436. On the upside, resistance at 10 DMA at 2608 needs to be broken above once again, and an appetite above that level would strengthen the bullish momentum. This could also trigger gains towards the resistance at 40 DMA at 2643. The long candle body points to conviction on the upside, and the indicators suggest we could see prices fall in the near term.

Ldn 2nd Month Cocoa Futures

London cocoa futures plunged yesterday as protracted selling pressure triggered a close at 1724. The stochastics are falling, with %K/%D converging on the downside to exit the overbought territory. The MACD diff is positive and converging, and a break of the support at 1700 could trigger losses through a 38.2% fib level at 1692, with the tertiary level at 1670. On the upside, a break back above 1784 could set the scene for a test of 1800. A break below all DMAs yesterday points to a strong downward conviction. We believe that the momentum will favour the downside, and after yesterday’s long candle body, we expect prices to soften today.

Contents

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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