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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 rallied on Friday as buying pressure triggered a close on the front foot at 19.26. The stochastics are rising out of the oversold, as the MACD diff is negative and converging, signalling growing buying pressures. This suggests we could see higher prices in the near term towards the resistance at 19.50, but the market needs to take out immediate resistance at 40 DMA at 19.31 beforehand, rejecting the resistance at that level. On the downside, support around 100 DMA at 18.68 is also robust, and if this level does not hold firm, we could see prices retreat back through the 10 DMA at 18.89 before 18.50. Long candle body points to an appetite for higher prices; however, appetite struggled above the resistance of 40 DMA during the day. Prices need to take out current resistance to confirm the outlook for higher prices.

Ldn 2nd Month Sugar Futures

Ldn sugar futures jumped higher on Friday as prices closed at 523.10. The indicators are favouring the upside, as %K/%D is rising and diverging out of the oversold. MACD diff is negative and converging, outlining recent buying pressures. A break above 40 DMA at 527.15 would bring into play the resistance level at 530.20 and 540. On the downside, futures need to break below 10 DMA at 513.01 and then target 100 DMA at 50.56 in the near term. The jump yesterday suggests further upside momentum, and the indicators point to a continuation of this trend. However, DMAs have created tight support and resistance levels, and prices need to break above 40 DMA to confirm the outlook on the upside.

NY 2nd Month Coffee Futures

NY coffee futures softened on Friday after finding support above 209.65. The market closed at 213.90. The stochastics are rising but converging, with %K seen tailing off on the downside, and the MACD diff is negative and converging, suggesting we could see higher prices in the near term before the change of trend. A break below the 212.60 level would bring into play the 209.65 level, which could set the scene for support at 200 in the longer term. On the upside, futures need to gain back above 221 – the previous week’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains through the level at 40 DMA at 221.76; this could strengthen the trend in the long run on the upside. Longer lower wick, where most of the trading took place in the upper ranges, points to further selling pressures points to uncertainty about lower prices and we might see prices edge higher today.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged lower on Friday as trading saw prices close at 2040. The RSI is falling, and %K/%D is falling towards the oversold. The MACD diff is negative and diverging, suggesting a further appetite for lower prices, but futures need to break below the 2010 level to trigger the momentum. A break below this level towards support at 2000 and then 1952 would confirm the strong bearish momentum. Conversely, an appetite for prices above the 10 DMA at 2078 could trigger a test of resistance of 2100. A long-legged candle shows indecision about either direction; the length of the wicks also points to increased volatility during the day. The indicators point to a further rise in prices, but futures need to close above 10 DMA, the level they struggled to break above completely in the last couple of weeks.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground on Friday as buying pressure prompted a close at 2486. The stochastics are decreasing in the oversold, and the MACD diff is negative and converging, suggesting deteriorating bearish momentum in the near term. Prices have been testing 2436 for the last week as futures struggled below that level. A break below that level could break the trend and set prices down to 2400 and 2333. On the upside, a breach above the 61.8% fib level at 2485 would bring into play the recent firm resistance of 10 DMA at 2509. convergence of DMA and support provides strong support/resistance for prices, and if the former remains firm, we could see prices edge higher.

Ldn 2nd Month Cocoa Futures

NY cocoa futures gained ground on Friday as buying pressure prompted a close at 2486. The stochastics are decreasing in the oversold, and the MACD diff is negative and converging, suggesting deteriorating bearish momentum in the near term. Prices have been testing 2436 for the last week as futures struggled below that level. A break below that level could break the trend and set prices down to 2400 and 2333. On the upside, a breach above the 61.8% fib level at 2485 would bring into play the recent firm resistance of 10 DMA at 2509. convergence of DMA and support provides strong support/resistance for prices, and if the former remains firm, we could see prices edge higher.

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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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