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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 buckled on Friday as protracted selling pressure triggered a close on the back foot below 19.50 at 19.21. The stochastics are falling, with %K now oversold, and RSI is also falling. The MACD diff is negative and diverging, confirming growing selling pressure; this could set the scene for lower prices towards the 19.00 level. A break below this level would confirm the outlook of lower prices, and the end of the ascending triangle formation down to 100 DMA at 18.67. On the upside, a break above 19.75 and 10 DMA at the 19.80 level could strengthen the trend on the upside in the near term. The long body and short wicks point to an increased appetite for lower prices, and indicators confirm the outlook for more downside momentum in the near term.

Ldn 2nd Month Sugar Futures

Lnd sugar futures sold off on Friday as a lack of appetite for higher prices helped to confirm the rejection of bullish momentum, the market closed below 40 DMA at 523.40. Stochastics are falling, with %K in the oversold territory; MACD is negative and diverging, suggesting lower prices in the near term. The sell-off yesterday and close on the lows suggest strong selling pressure, and the break below the 40 DMA support at 525.90 confirms the outlook for lower prices. A break below 520 could set the scene for a test of support at 510.70. On the upside, an appetite for prices back above 10 DMA at 539.57 would help reaffirm the trend on the upside. The key level on the upside is 547.90. The candle body and indicators point to further downside momentum.

NY 2nd Month Coffee Futures

NY coffee futures held their nerve on Friday as intraday trading saw prices close at 227.15. The RSI is falling, and %K/%D have converged o the upside, a strong buy signal. Likewise, the MACD diff is converged on the upside, suggesting an appetite for higher prices, but futures need to break above the 23.6% fib level at 227.95 to trigger the momentum. A break above this level towards 100 DMA at 233.34 would confirm the strong bullish momentum. Conversely, an appetite for prices below the 40 DMA at 225.29 could trigger a test of support of 221. A long-legged doji candle shows indecision about either direction as it traded between 40 and 23.6% fib levels; the length of the wicks also points to increased volatility during the day. The indicators point to a change of momentum on the upside, but futures need to close above 100 DMA, the level they struggled to break above in the last couple of weeks.

Ldn 2nd Month Coffee Futures

Ldn coffee futures opened higher day-on-day and gained marginal ground to close at 2116. The %K/%D is rising. The MACD diff is positive and diverging, suggesting a further appetite for higher prices, but futures need to break above the trend resistance of 2137 to trigger the momentum. Prices closed above 40 DMA at 2111, which could be a sign of growing appetite above these levels. A break below 2104 would confirm the strong bearish momentum towards 10 DMA at 2100. A dragonfly doji candle shows rejection of lower prices and could point to an acceleration of bullish sentiment.

NY 2nd Month Cocoa Futures

NY cocoa futures softened on Friday after piercing the support level of 200 DMA. The market closed lower at 2554. The stochastics are falling, with %K/%D just diverging on the downside near the oversold, and the MACD diff is negative and diverging. On the downside, futures need to break below the trend support of 2552 in order to confirm the bearish trend. However, this level has been robust in the last couple of months. Alternatively, the appetite back above 200 DMA at 2578 could set the scene for higher prices back to test the 2600 level, confirming the hammer formation. Indeed, the trend support level has been robust in the last couple of months, but indicators point to further downside momentum. A break below this level would suggest strong conviction on the downside in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged lower on Friday as moderate selling pressure triggered a close below trend support at 1770. The stochastics are falling, and the MACD diff is negative and diverging, suggesting further downside momentum. A break of the 61.8% fib level at 1767 could trigger losses through 1750. On the upside, a break above previous sessions’ highs at 1800 could set the scene for a test of the 76.4% fib level at 1813, pointing to a change of trend for more bullish momentum. Friday’s spinning top formation points to market indecisiveness about the outlook for lower prices, but a break below the robust trend support alongside bearish indicators points to growing downside momentum in the near term.

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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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