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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 once again failed into resistance at 18.00, this level held firm and prices closed at 17.68. Stochastics are rising but remain overbought and the MACD diff is converging back to neutral territory suggesting positive momentum. Upside tails indicate strengthening buying pressure, and this could trigger gains to 18.17 and if futures break this level the market may trigger test 18.44. On the downside, the reaffirmation of resistance and shooting star suggests lower prices in the near term back towards 17.50. A break of support at 17.50 would confirm the descending triangle. We expect the market to edge lower in the near term.

Ldn 2nd Month Sugar Futures

Futures edged lower as prices closed at 501.70, the market struggled held above 500. The stochastics improve on the upside as they break towards positive territory, the gap between them suggesting strengthening momentum but this could trigger a move towards 512, especially after prices hold above 500. Volumes have declined as prices have rallied and this indicates reduced conviction. A break below 500 may set the scene for lower prices back towards the recent low at 490. Near term momentum favours the upside. 

NY 2nd Month Coffee Futures

Prices gained ground yesterday as buying pressure prompted a close on the front foot at 215.75. The stochastics are rising and the MACD diff is positive and diverging outlining positive momentum. The market is testing resistance at 218.17, a break of this level may trigger a break towards 230 but the 100 DMA is at 220.93. Rejection of this level would confirm the downtrend in the near term and may trigger losses back towards 200 and then 195. A close on the front foot would confirm the three white soldiers which is a bullish pattern.  

Ldn 2nd Month Coffee Futures

Futures managed to close above key resistance yesterday as buying pressure took hold, The close was below 2040 which is another key level and futures have rallied through this level this morning and tests trend trend resistance. The stochastics are overbought and this highlights upside momentum, the RSI and MACD diff are positive suggesting higher prices. Prices are testing trend resistance at 2060 and a break here would trigger a breakout towards 2100. If this level holds firm we could see futures decline back towards the 40 DMA at 2015.27. The reaffirmation of trend resistance would confirm the trend on the downside but the market needs to take out the low at 1914 to confirm the trend. 

NY 2nd Month Cocoa Futures

NY cocoa prices edged higher yesterday as intraday trading caused futures close above the moving averages at 3388. The stochastics are neutral as the MACD diff is positive, and RSI is also rising. The volumes yesterday were very strong and this indicates conviction in the market, but futures need to break above trend resistance in order to confirm the outlook of higher prices, this would confirm a rejection of the descending triangle. On the downside, rejection of trend resistance would confirm the outlook of lower prices back towards 2333. 


Ldn 2nd Month Cocoa Futures 

Cocoa futures have found support around the longer term moving averages, and this could set the scene for higher prices towards 1820. The stochastics are rising and this outlines market sentiment, the MACD diff is positive and this helps to confirm the outlook. Prices need to break above 1800 in the near term with the next key level the resistance band at 1840 - 1860. On the downside, a break below the moving averages at 1750 would set the scene for lower prices towards 1680 in the longer term. 



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