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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 prices failed into the 50% Fib level yesterday and the 100 DMA at 18.95, the market closed at 18.78. The indicators are declining and are oversold with the RSI rising. The MACD diff is negative and starting to converge and this could be due to the upside tails indicating improving buying pressure. However, repeated rejection of prices above the 100 DMA and 19.00 suggests lack of appetite for prices above this level. We expect to see lower prices back towards 18.44. A break of support at this level would confirm the lower highs lower lows environment. We anticipate lower prices in the near term. 

 

Ldn 2nd Month Sugar Futures

Ldn prices sold off yesterday as intraday trading caused futures to decline and close just above the 40DMA at 532.28. The indicators are negative with the stochastics falling further into oversold and the MACD diff is also negative, this combination suggests lower prices in the near term and a break of support of the 40 DMA. This would confirm the rejection of 540 and the negative indicators.  Secondary support stands at 520, the 100 DMA is rising and will provide robust support in the medium term. On the upside, futures need to gain a footing above 540 and trigger gains towards 547.90. 

NY 2nd Month Coffee Futures

Coffee prices gained ground yesterday as futures tested resistance at 235.25, the market closed at 232.35. The indicators are neutral, the support at the 100 DMA has held firm and this may set the scene for higher prices towards 240 in the near term. A break here could set the scene for higher prices to 244 and 254. A break of support at the 100 DMA would trigger losses back to 220. Upside momentum has waned with rallies being sold but if prices break 240, this would confirm the inverted head and shoulders. 

Ldn 2nd Month Coffee Futures

Ldn coffee prices were supported yesterday as intraday trading caused futures to close at 2101. The indicators are rising, back above neutral territory, the MACD diff is neutral but the RSI is also neutral. Rallies have been sold in recent sessions and we expect the same to be the case in the coming sessions. The volumes yesterday were steady suggesting appetite for prices but the longer term trend suggests the market is in a long term descending triangle. Lack of appetite for prices above 2100 would set the scene for lower prices towards 2010. 

NY 2nd Month Cocoa Futures

NY cocoa prices gained ground yesterday as buying pressure prompted a test of resistance around 2485, the market closed at 2468. Volumes were stronger yesterday and the indicators are starting to improve. The MACD diff is positive and about to diverge on the upside suggesting higher prices towards 2500. A subsequent breach of this level could trigger gains to 2553. Rejection of the fib level at 2485.97, this could trigger losses back towards 2420. Momentum favours the upside in the near term. 

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged higher to test resistance at the 50 DMA. this level held firm and the market closed at 1764. The stochastics are rising but the MACD diff is neutral and the RSI is starting to rise. Futures need to break above the 50 DMA at 1773 and this could trigger gains previous trend support at 1787. If this level holds firm the market could trigger gains losses back towards long term trend support. On the upside, if support around 1760 could set the scene for higher prices, the market needs to break above trend resistance around 1830. 

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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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