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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 softened marginally yesterday as intraday trading saw futures test appetite at 17.60. This level held firm, and the future closed at 17.65. The stochastics are falling, with %K/%D diverging on the downside in the oversold. Likewise, the MACD diff converged on the upside, signalling growing buying pressures; the diff is now falling. To confirm the outlook for lower prices, the market needs to take out support at 17.48 and then support at 17.00. On the upside, futures need to break back above the resistance at 18.00, which could set the scene for futures to take out the 18.17. The 10 DMA level crossed below 100 and 40 DMAs in recent days, a death cross formation; however, with the indicators being oversold and yesterday’s candle having a longer upper wick on Tuesday, we expect the downside momentum to slow in the near term.

Ldn 2nd Month Sugar Futures

Lnd sugar futures softened yesterday after finding support above 489. The market closed at 489.60. The stochastics are losing ground in the oversold territory, and the MACD diff is negative and flat day-on-day, suggesting we could see a slowdown of the downside trend. A break below 489 completely would bring into play the 480 level, which could set the scene for 471.80. On the upside, futures need to gain back above 500 – the previous day’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 506; this could strengthen the trend in the long run on the upside. The inside candle points to bear trend slowdown yesterday, but with the indicators yet to show signs of convergence, we expect to see moderate softness today before the trend reversal.

NY 2nd Month Coffee Futures

NY coffee futures edged higher yesterday, breaking resistance at 10 DMA to close at 209.45. The indicators suggest we could see higher prices in the near term. The stochastics are diverging on the upside; the RSI is rising, however, the MACD diff lacks the conviction to confirm the outlook. On the upside, a break above the 209.65 level could then test the 212.60 level. Superseding this level, resistance stands at 222, the 40 and 100 DMAs level. On the downside, if futures fall below 202.30, then we could see futures break back below 200. The indicators point to further upside in the near term, however, the futures need to break above the 10 DMA level completely to confirm the outlook for the upside.

Ldn 2nd Month Coffee Futures

Ldn coffee futures opened higher yesterday, but the resistance of 1990 caused futures to close lower on the day at 1974. The stochastics are seen converging on the downside, with the %K/%D flattening near the overbought, and the MACD diff is positive. A break back below 10 DMA at 1971 could trigger losses through 1952, with the tertiary level at 1914. On the upside, a break above 2000 could set the scene for bullish momentum towards 2010 and 2039. The spinning top formation has been formed, which points to market indecisiveness about higher prices, however, the indicators suggest softening of the momentum in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher yesterday, breaking above resistance at 40 DMA and closing at 2435. The stochastics are rising, with %K/%D just diverging on the upside into the overbought, and the MACD diff is positive and diverging, sending a buy signal. The reaffirmation of support at 40 DMA at 2404 could set the scene for higher prices to test the 2500 level. On the downside, futures need to break below the support of 2400 in order to end the recent sessions’ bull trend down to 10 DMA at 2358. The market needs to confirm a footing above the 40 DMA to improve the outlook on the upside.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures gained ground yesterday as buying pressure prompted a break of 1800. The market closed at 1811. The stochastics are diverging on the upside while trading in the overbought territory, and the MACD diff is positive and diverging, suggesting further buying pressures. To confirm that outlook, prices need to break above the trend resistance to target 1830 and 1850 – also February highs. On the downside, 50 DMA at 1753 is the near-term support, and a break below that level could set the trend down to 100 and 200 DMA at 1752. Prices have struggled above 1800 in recent weeks, and a break above this level points to a strong conviction of higher prices in the near term.



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