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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 sold off yesterday as a lack of appetite for higher prices above 20.00 helped to confirm the close at 19.57. Stochastics are topping out and are now falling out of the overbought territory; the MACD converged on the downside, suggesting lower prices in the near term. The long bearish candle and a test of 40 DMA at 19.49 mean we could see prices edge below that level. A break below 19.50 could set the scene for a test of support at 19.00 and then the 100 DMA 18.82, which is improving. On the upside, an appetite above 20.00 would help reaffirm the trend on the upside. The key level on the upside is 20.38, and if futures break above this level could set the scene for higher prices higher in the medium term. Indicators point to the end of the bull run, but futures need to break below 40 DMA to confirm the outlook.

Ldn 2nd Month Sugar Futures

Ldn sugar futures weakened yesterday as futures failed into the robust resistance at 558 and closed at 550.20. The stochastics have converged on the downside in the overbought and now falling. The MACD diff is positive and converging, confirming a sell signal from stochastics. A break below the support of 547.90 would confirm a bearish engulfing candle pattern. This may pave the way for lower prices to 10 DMA at 544.96 with the tertiary level at 530.20. Conversely, the reaffirmation of support above 550 would suggest higher prices and a close above 560, setting the scene for higher prices towards 564.20, the level not seen since November 2016. Yesterday’s candle body being larger Monday’ suggests a growing appetite for lower prices and could trigger a break of support today. The indicators are pointing to a further decline in prices in the near term.

NY 2nd Month Coffee Futures

NY coffee futures gained ground yesterday as moderate bullish sentiment saw futures break above the 100 DMA resistance level, and the futures closed at 231.45. The stochastics are rising, and the MACD diff is diverging on the upside, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance of 100 DMA at 229.33 completely, which could set the scene for futures to take out the 240 level. On the downside, the market needs to take out support at the 23.6% fib level at 227.93 and then support at 40 DMA at 221.61. The 10 DMA level is about to cross above 40 DMA and has been providing support for futures prices, with a longer upper wick on Tuesday, confirming the appetite for higher prices.

Ldn 2nd Month Coffee Futures

Ldn coffee futures gained pace, however, prices struggled above 2104 and closed at 2110. The stochastics are rising, with %K now overbought. The MACD is positive and diverging, suggesting higher prices in the near term. However, to do so, the futures would need to break above 2104 completely. This may prompt futures to test 100 DMA at 2143. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Alternatively, the rejection of higher prices may prompt a break back towards support at 40 DMA at 2086, a subsequent breach of this level could trigger losses towards 2078. Short upper and lower wicks point to an appetite out of the current trading range, and 10 DMA is crossing above 40 DMA could give futures another leg up; however, the future needs to break above 2104 to confirm the outlook.

NY 2nd Month Cocoa Futures

NY cocoa futures jumped higher yesterday above 10 DMA, however softened day on day to close at 2515. The stochastics have converged on the upside, with the %K/%D now rising higher in the neutral territory, and the MACD diff is positive and diverging. A break of 2500 could trigger losses through 10 DMA at 2481, with the tertiary level at 2436. On the upside, a break above 40 DMA at 2541 could set the scene for bullish momentum towards the month high of 100 DMA at 2587. The spinning top formation has been formed, which points to market indecisiveness, however, a jump above the resistance of 10 DMA points to an appetite for prices above that level.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures jumped higher but closed lower day on day yesterday as prices closed at 1765. The indicators continue to favour the upside, with %K/%D edging higher out of the oversold and MACD diff negative and converging, suggesting growing buying pressures. A break below the 1750 level would bring into play the recent sessions’ support level at 1730. Prices have been well supported above this level in recent sessions, and a break above 200 DMA at 1762 yesterday could indicate an improvement of market sentiment on the upside. For that, the futures need to gain a footing above the rest of the DMAs in the near term. The hanging man candle formation suggests that while there was a sell-off during the day, the buyers had an appetite for higher prices. The break above the resistance level would help confirm the sentiment.

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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