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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

Prices consolidated yesterday as prices were once again supported at 17.50, prompting a close at 17.80. The stochastics are rising and a buy signal could be on the horizon, as the buying pressure is confirmed by the downside tails. The MACD diff is converging suggesting improved upside momentum but prices need to break above the 10 DMA and then 18.00 in order to confirm improved buying pressure. If futures reaffirm resistance at 18.17 this would confirm the downtrend in the longer run and set the stage for lower prices through 17.50. In the near term futures need to break above the 10 DMA and confirm the hammer candles and downside tails. 

Ldn 2nd Month Sugar Futures

Futures gained ground yesterday as buying pressure prompted a test of 500, this level held firm and this prompted a close at 498.30. The stochastics are rising and look to break out of oversold and the MACD diff is converging, this may prompt a break of resistance at 500 and test the 50% fib level at 506.95. Volumes remain below the average and this suggests reduced conviction. If resistance holds firm, this would set the scene for lower prices and confirm the weaker sentiment in the longer run. We expect prices to edge higher in the near term to the 50% fib level. 

NY 2nd Month Coffee Futures

Selling pressure has increased causing prices to test support at 200, this level held firm and the market closed at 206.70. The stochastics are falling towards neutral territory, and this could trigger losses through support at 200, the MACD diff is negative but lacks conviction. The reaffirmation of resistance around the 40 and 100 DMA needs to be confirmed and a breach of 200 could trigger losses to 195 and 190.50. Selling pressure is rising but if futures are well supported at 200 this could trigger gains to 210 but in order to confirm the outlook of higher prices in the long run, futures need to break above the 100 DMA, which we do not expect in the near term.

Ldn 2nd Month Coffee Futures

The market softened yesterday as intraday trading saw prices test support at 2010, the market closed at 2020. The stochastics are overbought but has given a sell signal and the MACD diff is positive but is not diverging suggesting we could see futures edge lower in the near term through support at the 10 DMA. This would confirm the rejection of 2050. Futures have been supported at the 10 DMA in recent weeks, prices could push back towards 2050, a break of this level would improve upside sentiment. 

NY 2nd Month Cocoa Futures

Cocoa rejected trend resistance yesterday and this prompted futures to close on the back foot at 2390. The stochastics are falling as the MACD diff is positive but lacks conviction, the rejection of trend resistance could set the scene for lower prices towards 2333. Volumes are strong and if we see this continue as prices decline this would strengthen the case for lower prices and the rejection of trend resistance. A break of 2333 would confirm the descending triangle and prompted prices to 2236. Prices need to break trend resistance, this may prompt a breakout to 2532. 

Ldn 2nd Month Cocoa Futures

 

Cocoa futures gained ground yesterday as prices tested resistance at 1790, prompting a close at 1781. The stochastics are falling through neutral territory, the RSI is also around neutral and lacks conviction. Support at the 50 DMA has set the scene for higher prices towards 1800, this could set the scene for a test of longer term resistance at 1820. On the downside a breach of support at the 100 DMA could set the scene for lower prices to 1750 and then 1700. The long term trend is that of consolidation and we do not expect prices to move out of that range. 

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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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