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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 opened below a key support level of 18.40 on Friday, but support at 18.17 caused a close at 18.31. The RSI is falling, and %K/%D is falling in the oversold. The MACD diff is negative and flat, which could suggest stalling selling pressures in the near term. The indicators point to slowing momentum on the downside but to confirm the rejection of the support, prices need to take out 18.17. A break below this level towards 18.00 would confirm continued bearish momentum. Conversely, an appetite for prices above the 18.44 level could trigger a test of 10 DMA at 18.66. A dragonfly candle formation signals slowing momentum on the downside. To confirm the indicators outlook, a break back above the near-term resistance level is needed.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened on Friday after testing the support level of 100 DMA. The market closed at 523.30. The stochastics are falling in the oversold, but %K/%D is seen converging, which could indicate a buy signal in the near term, and the MACD diff is negative and diverging. The appetite back above 530.20 could set the scene for higher prices back to test the 10 and 40 DMA at 532, confirming the hammer formation. On the downside, futures need to break below the support of 100 DMA at 520.36. Indeed, the 100 DMA support level has been robust in the last couple of weeks, but a break below this level would suggest strong conviction on the downside in the near term.

NY 2nd Month Coffee Futures

NY coffee futures weakened on Friday after closing below 10 DMA at 223.25. The stochastics have converged on the downside and now falling, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through the support of 40 DMA at 223.89. A break below this level would bring into play the 220 and then 212.60. On the upside, futures need to gain back above 236.25 – the previous day’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the 240 level; this could strengthen the trend in the long run on the upside. The longer upper wick points to an increased appetite on the downside, and we expect to see prices edge lower in the near term.

Ldn 2nd Month Coffee Futures

Prices weakened on Friday as moderate selling pressure triggered a close at 2044. The stochastics are falling, signalling a continuation of the bearish trend. The MACD diff is negative and diverging. Dips in the market have been well bid in the last couple of sessions, and in order to confirm the continuation of the trend, prices need to break below the current support of 2039 and then 2010. Conversely, a break above the 10 DMA resistance line at 2076 could set the scene for a test of 40 DMA at 2084. We expect prices to weaken in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures struggled to break below 10 DMA support on Friday, and intraday trading saw prices close at 2432. The stochastics are rising, and the MACD diff is positive and diverging marginally, suggesting some appetite for higher prices, but futures need to break the resistance of 40 DMA at 2481 to trigger the momentum. A break above this level towards 2500 would confirm the stronger positive momentum. Conversely, an appetite for prices below 10 DMA at 2415 could trigger a test of support of 2400. A gravestone doji candle shows rejection of lower prices but lacked the conviction to break above the near-term resistance levels in the form of moving averages. We expect prices to remain range bound in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at 200 DMA. This level held firm, and the future closed at 1760. 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 firm DMA resistance levels with 200 DMA at 1759, which could set the scene for futures to take out the 100 DMA level at 1768. On the downside, the market needs to take out support at 1750 and then a 50% fib level at 1730. The futures have been trying to break above the firm DMA resistance levels in recent weeks but lacked the momentum to confirm the outlook for higher prices. We expect prices to remain capped by these levels in the near term.

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Disclaimer

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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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