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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 sold off yesterday as a lack of appetite for higher prices helped to close on the back foot below the 10 DMA at 17.77. Stochastics have converged on the downside and now falling, suggesting further selling momentum in the near term. MACD diff is positive and converging, supporting the outlook for deteriorating prices. The last two days formed a strong bearish engulfing pattern, a sign of an impending market downturn. The sell-off yesterday and a long lower wick suggest further selling pressure below the current support level, and the indicators support lower prices. A break below 17.50 could set the scene for a test of support at 17.38. On the upside, support around this level would help reaffirm the bullish trend in the near term back towards the 10 DMA level of 18.22 before 40 DMA at 18.36. We expect prices to soften further today.

Ldn 2nd Month Sugar Futures

Lnd sugar futures buckled yesterday as protracted selling pressure triggered a close on the back foot at 512.50. The stochastics are falling, and %K is now out of the overbought territory, the RSI is also falling. The MACD diff is positive and converging, confirming growing selling pressure; this could set the scene for lower prices below 513. A break below this level would confirm the outlook of lower prices down to 500 then 490. On the upside, a break above the 40 and 10 DMA resistance levels at 522 and appetite above 100 DMA at 528 could strengthen the trend on the upside in the long run. Futures need to take out the 513 in order to confirm the outlook of lower prices.

NY 2nd Month Coffee Futures

NY coffee futures softened marginally yesterday as intraday trading saw futures test appetite and close at 211.85. The stochastics are falling, with %K/%D diverging on the downside. Likewise, the MACD diff is converging on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 212.60 completely, which could set the scene for futures to take out the 209.65. On the upside, the market needs to take out resistance at 10 and 40 DMAs at 214 and then 100 DMA at 220.39. The 100 DMA level continues to cap the futures from the upside, however, seen flattening, and with a longer upper wick on Thursday, we could see the bears’ strength grow in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures weakened marginally yesterday after testing the support and closing at 2218. The stochastics are falling, with %K/%D just converging on the downside, now edging out of the overbought. Likewise, the MACD diff is positive and converging, pointing to a growing sell signal across the indicators. To confirm this, futures need to break below the support of 2200, down to 10 DMA at 2178. Indeed, the 10 DMA support level has been robust in the last couple of sessions, a break below this level suggests growing conviction on the downside. On the upside, reaffirmation of support at 2220 could set the scene for higher prices back to breach 2281, confirming an inverse hammer formation. The indicators confirm growing selling pressures, and a break of 10 DMA support would suggest a growing downside conviction in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher yesterday, but a lack of appetite for higher prices caused the futures close lower day-on-day at 2422. The stochastics are seen diverging on the upside after the %K/%D converged on the upside, and the MACD diff is positive. A break back below 10 DMA at 2402 could trigger losses through 40 DMA at 2375, with the tertiary level at 2333. On the upside, a break above 2450 could set the scene for bullish momentum towards the 2-week high of 2465. The spinning top formation has been formed, which points to market indecisiveness; however, a jump above the resistance of 2420 points to an appetite for prices above that level.

Ldn 2nd Month Cocoa Futures

Lnd cocoa futures jumped higher, above the previous day's closing price, but the bullish momentum was not strong enough, and futures closed at 1827. The stochastics continue to rise, yet seen in the overbought, and the MACD diff is positive and diverging. The rejection of prices below the trend resistance has formed a candle with a narrow body but a long wick on the upside, suggesting an appetite for higher prices, however, lacking the conviction to break above the near-term resistance of 1830. If prices were to break above this level, this could trigger a test of 1850. To confirm the shooting start formation, futures need to take out the trend level and then robust support at 1800. A break below this level would confirm the outlook for lower prices.

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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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