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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 held their nerve on Friday as intraday trading saw prices close at 19.75. The RSI is falling, and %K/%D is falling out of the overbought. The MACD diff is positive and converging, suggesting a further appetite for lower prices, but futures need to break above the 40 DMA level at 19.48 to trigger the momentum. A break below this level towards the support of 19.00 would confirm the strong bearish momentum. Conversely, an appetite for prices above the 10 DMA at 19.89 could trigger a test of resistance of 20.00. A long-legged doji candle shows indecision about higher prices above 19.75. The indicators point to a fall in prices, but futures need to close below 40 DMA, the level they struggled to break above in the last couple of sessions.

Ldn 2nd Month Sugar Futures

Ldn sugar futures gained ground on Friday as moderate buying pressure triggered a breach of the 547.90 level to close at 551. The stochastics are rising in the overbought and showing signs of convergence, and the MACD diff is positive and flat, suggesting upside momentum is stalling, and lower prices are on the horizon. This suggests we could see lower prices in the near term back towards 10 DMA at 541.77 before testing 530.20. On the upside, if the prices break through 547.90 completely, we could see prices strengthen back to 558, the April highs. The longer upper wick suggests a lack of appetite above 550, resembling a shooting star formation, and if futures struggle to break above that level, we could see prices retreat in the near term.

NY 2nd Month Coffee Futures

NY coffee futures gained ground on Friday as buying pressure triggered a close on the front foot above trend resistance at 229.70. The stochastics are rising with the %K/%D diverging towards the overbought area, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards 240, but the market needs to take out immediate resistance of 100 DMA at 229.33. On the downside, the candle found support at 40 DMA at 221.53, and if the prices break through this level, we could see prices retreat back through the trend resistance at 218 before 212.60. The three white soldier formation is a bullish signal, but futures need to take out 100 DMA in order to confirm the outlook on the upside.

Ldn 2nd Month Coffee Futures

Prices weakened on Friday as selling pressure triggered a close at 2096. The MACD diff is positive and diverging. The stochastics are rising, and now the %K is edging close to the overbought territory. The RSI is also rising, and the inside day yesterday suggests a continuation of the recent trend on the upside. Dips in the market have not been well bid and a recent candle testing support above Thursday’s close points to uncertainty for lower prices. If this level holds, prices could break above 2104 and then 100 DMA at 2147. Conversely, a fall below the recent support of 40 DMA at 2088 could trigger losses to 2078. The indicators point to further upside momentum, but candles need to break above the near term resistance of 2104 to confirm this.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher on Friday, but resistance at 2500 saw prices close at 2482. The stochastics remain flat but are showing signs of diverging on the upside, and the MACD diff is positive and diverging. On the downside, a break of 2436 could trigger losses through 2400. Alternatively, a break above the 61.8% fib level at 2485 could set the scene for bullish momentum towards 40 DMA at 2544. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above the near term resistance, we could see futures test this level once again.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures opened higher on Friday, but the resistance of 1750 caused futures to close lower on the day at 1739. The stochastics are seen falling on the downside, but the %K/%D is now showing signs of convergence in the oversold, and the MACD diff is negative and converging marginally. A break of the 50% fib level at 1730 could trigger losses through 1700, with the tertiary level at 1692. On the upside, a break above 1750 could set the scene for bullish momentum towards 100 DMA at 1767. The indicators point to a reversal of momentum on the upside, however, futures struggled to break the resistance of 1750 in recent sessions.

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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