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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 sold off on Friday after it opened the higher day on day as selling pressure prompted a test of support at 10 DMA. The market closed at 18.36. The stochastics are rising, but %K/%D is again seen converging on the downside whilst the MACD diff is negative and converging. Yesterday’s full candle and the bearish engulfing pattern formation suggest a strong appetite for lower prices, and we could see futures continue to edge lower in the near term down to 18.17. Secondary support stands at 18.00, with that level holding firm in recent weeks. Conversely, resistance around 18.83 could set the scene for higher prices back to the 100 DMA level at 19.00. A break above that level would help to gain upside conviction. We believe that there is an appetite for lower prices in the near term. NY contract is closed today.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened on Friday after piercing the support level of 530.20. The market closed marginally lower at 529. The stochastics are rising, but %K/%D is showing signs of converging on the downside, and the MACD diff is negative and converging, suggesting we could see higher prices before the change of trend on the downside. The reaffirmation of support at 10 DMA at 529.35 could set the scene for higher prices back to test the 40 DMA level at 534.74. On the downside, futures need to break below the support of 10 DMA in order to confirm the bearish trend. A break below this level could help confirm lower prices in the near term to 522 and 512, respectively.

NY 2nd Month Coffee Futures

NY coffee futures weakened on Friday after closing below 10 DMA at 224.65. The stochastics are about to converge on the upside, 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 224.60. A break below this level would bring into play the 221 level. On the upside, futures need to gain back above 236 – 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

Ldn coffee prices declined on Friday after prices confirmed resistance at 2039. The market closed at 2006. The stochastics continue to weaken and are now oversold, and MACD diff is negative and diverging the downside, suggesting we could see more downside momentum in the near term before the change of momentum. A break below 2010 could set the scene for a test of support at 1952. However, the near-term support has been strong in recent months, and if this level hold, it could set the scene for higher prices back to 10 DMA at 2056 before 40 DMA at 075, confirming the triple bottom formation. The long candle body confirms indicators’ outlook for lower prices in the near term, but robust support needs to be broken first to confirm this momentum in the longer term.

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower on Friday, causing the market to close at 2314. The stochastics are falling, with %K about to enter the oversold, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the outlook for lower prices, futures need to close back below 2317, the level prices struggled to break below since last July and then target 2300. The 10 DMA is closing in and supporting prices on the upside. However, a break above that level at 2405 could set the scene for 40 DMA at 2454 and then 2500. The narrow candle body with long upper and lower wicks points to stalling downside momentum, and the futures need to break out of current resistance/support to confirm the near-term outlook.

Ldn 2nd Month Cocoa Futures

Ldn cocoa opened lower, but trend support caused futures to close marginally higher day on day at 1715. The stochastics are falling as %K/%D are diverging on the downside, as the MACD diff is negative and diverging. This suggests we could see lower prices in the near term, but the market needs to take out immediate support of 1700 towards 1680. On the upside, if the near-term support level holds firm, we could see prices gain back through the 1730 level to 1750. This would confirm a trend support level. Indicators point to lower prices in the near term, but near-term support is robust, and we expect it to hold.

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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