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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

 

Sugar futures declined on Friday as intraday trading tested resistance at 18, but this level held firm and the market closed at 17.69. The stochastics are declining and are in oversold as the MACD diff is negative and diverging, this indicates lower prices in the near term, especially after the double rejection of 18. The double shooting star indicates we could re-test 17.48, a break here would confirm the chart pattern. On the upside, prices need to hold above 18, this would improve the outlook and help traders regain upside conviction. Buying pressure has improved shown by the upside tails but we anticipate prices to remain on the downside. 

 

Ldn 2nd Month Sugar Futures

Sugar futures declined on Friday as lack of appetite above 500 triggered a close at 497.30. The indicators are bottoming out with the stochastics giving a buy signal, and the MACD diff is converging. This suggests an improvement in sentiment but prices need to take root above 500 in order to regain upside momentum. A break above the 10 DMA may trigger a test of 512.9. On the downside, a resumption of selling pressure today would bring support at 487.60 into play. Long term momentum is on the downside and the reaffirmation of resistance at the 10 DMA could reaffirm this trend. 

NY 2nd Month Coffee Futures

Coffee futures edged lower on Friday as intraday trading saw prices well bid at 210, triggering a close at 213.80. The stochastics are rising with the %K stochastic approaching overbought, and the MACD diff is diverging indicating robust upside momentum. The recovery of prices on Thursday and Friday suggests appetite for the market and this could prompt a test of resistance at 220. The 40 DMA and 100 DMA are closing in and will provide resistance, the reaffirmation of resistance at this level would confirm the downward trend. Selling pressure is rising down by the tails and a close below 210 would improve downside sentiment. Near term sentiment suggests we could see higher prices in the near term.

Ldn 2nd Month Coffee Futures

Coffee futures gained ground on Friday as intraday trading saw prices test resistance at 2040, this prompted a close at 2028. The indicators favour the upside and this could set the scene for higher prices as the stochastics are overbought and the MACD diff is positive and diverging. Rejection of prices at 2040 could set the scene for lower prices to 2010 and then 2000. The reaffirmation of resistance at this level could trigger losses back to 1952. On the upside, a breach of 2040 may prompt a test to trend resistance at 2070. We anticipate upside pressure today as momentum is robust. 

 

NY 2nd Month Cocoa Futures

Cocoa futures consolidated losses on Friday after rejecting resistance at the 40 DMA, this prompted a close at 2373. Volumes were strong on Friday, but the stochastics are falling and the sell signal given, in order to confirm the signal, prices need to break through 2333 and then 2300. On the upside, prices need to gain a footing above 2400 and then 2420 and trend resistance to regain upside momentum, however the market suggests lower prices and we expect resistance to hold firm. 

 

Ldn 2nd Month Cocoa Futures

 

 Cocoa futures tested resistance at 1780 on Friday but this level held firm and the market closed at 1760. Buying pressure improved on Friday triggering at test of resistance at 1780 but the indicators are falling and the gap between the indicators suggest momentum on the downside is strong. The rejection of resistance could trigger a break of support at 1750, the moving averages are providing robust support and a break here would confirm the downside sentiment. On the upside, futures need to hold above the 100 DMA at 1765.

 

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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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