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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 edged slightly higher yesterday as trading saw prices close at 18.02. The stochastics are edging higher on the upside, and the MACD diff is positive and diverging, suggesting further upside momentum. A break below the 18.00 level once again could trigger losses through 17.48, with the secondary level at 17.30. On the upside, a break above 18.17, the level that futures have struggled to break, could set the scene for bullish momentum towards 18.44. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 18.17, we could see slightly more downside movement in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened yesterday after finding support above 512.90 once again. The market closed at 514.30. The stochastics continue to strengthen, with %K close to the overbought territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through the resistance of 520. A break above this level would bring into play the 40 DMA at 522.51, which could set the scene for 100 DMA at 530.20 in the longer term. On the downside, futures need to break below 512.90 in order to confirm downside momentum. The break of support here could trigger losses towards the level at 10 DMA at 502.87; this could strengthen the trend in the long run on the downside. Longer lower wick, where most of the trading took place in the upper ranges, points to an appetite for higher, however, prices need to break above the current resistance level to confirm the outlook.

NY 2nd Month Coffee Futures

NY coffee futures strengthened marginally yesterday, but resistance at 209.65 triggered a close below at 209.00. The RSI is falling, while %K/%D is diverging towards the oversold. Likewise, the MACD diff is positive and converging, which could send a sell signal in the near term. On the upside, finding support above 209.65 could trigger gains through 10 DMA at 211.14, the recent highs, towards 215. On the downside, a break below the 202.30 level could trigger losses back towards 200. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer lower wick signals that the buying pressure is growing, and the bullish outlook is on the horizon, but resistance at 10 DMA must be broken first to confirm the outlook.

Ldn 2nd Month Coffee Futures

Ldn coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 2100. The RSI is rising, while %K/%D are diverging on the upside in the overbought. The MACD diff is positive and diverging, outlining recent market growth. On the downside, a break back below the support level of 100 DMA at 2067 could trigger losses back towards 2040, a break below the 10 DMA at 2037 would confirm the outlook of lower prices in the longer term. On the upside, a break above the trend resistance could trigger gains towards 2120 - June highs. The market rally has been strong, with two robust candles confirming the strength of bull sentiment. We could see prices trend even higher today, but strong trend resistance needs to be broken for this to be the case.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher yesterday, testing the trend resistance to close at 2404. The indicators suggest we could see higher prices in the near term. The stochastics have converged on the upside, the RSI is rising, however, the MACD diff lacks the conviction to confirm the outlook. On the upside, a break above 2420 could then test the 2500 level. Superseding this level, resistance stands at 100 DMA at 2526. On the downside, if futures fall below 10 and 40 DMAs at 2375, then we could see futures break back below 2333. The narrowing DMA resistance/support suggests a narrowing trading range, however, a break out of these levels could pave the way for stronger momentum in the near term.

Ldn 2nd Month Cocoa Futures

Ldn sugar futures jumped higher yesterday as prices closed at 1803. The indicators favour the upside, with %K/%D diverging on the upside, and MACD diff is positive and diverging, suggesting growing buying pressures. A complete break above 1800 would bring into play the resistance level at 1820. On the downside, futures need to break below 50 DMA at 1756 and then target the recent lows of 1750 in the near term. The strong candle body suggests a growing appetite for the price above 1800. The jump yesterday shows a break out of the recent range, and the price could continue on the upside if they break above the near-term resistance.



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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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