A deep dive into the technical and Proprietary Levels in Coffee, Cocoa, Sugar, and Cotton.


Cocoa
Technicals (March)
50 DMA = 4106
200 DMA = 3456
Trend Reversal Point: 4301
Bear Trend Trigger Point: 4094
Cocoa futures flipped to a Bearish Trend on January 8th; Keep an eye on the 50 DMA at 4135 as your first level of support. If the trend reversal point is triggered on a closing basis, expect another sharp leg higher.
Bias: Bearish/ Neutral
Previous Session Bias: Neutral
Resistance: 4300-4350***
Pivot: 4135
Support: 4097

Coffee
Technicals (March)
50 DMA = 179.30
200 DMA = 169.58
Bull Trend Trigger Point: 193.37
Bear Trend Trigger Point: 177.55
After year-end profit-taking hit the coffee market, futures have corrected back to a Neutral trend. We will have to wait to see if dry conditions in key growing regions continue to provide support and if declining exchange stock inventories can drive prices higher.
Bias: Neutral
Previous Session Bias: Neutral
Resistance: 190.00**, 195.00**, 197.00**, 200.00***
Pivot: 185.00**
Support: 180.00-177.00***

Sugar
Technicals (March)
50 DMA = 24.42
200 DMA = 24.77
Bear trade trigger = 23.44
Sugar futures slipped back into a bearish trend on November 30 at 26.04 on record Brazilian production. However, a declining Indian 4th quarter production has provided a backstop on declining prices. Watch for a short covering rally in the coming days/weeks ahead.
Bias: Bearish/ Neutral
Previous Session Bias: Bearish/Neutral
Resistance: 21.95-22.00***
Pivot: 21.50
Support: 20.50-20.00**** Pocket Support

Cotton
Technicals (March)
50 DMA = 80.53
200 DMA = 82.94
Trend Reversal Point = 81.63
Bear Trade Trigger = 79.10
Cotton futures slipped back into a bearish trend on the close of December 18th but, since then have traded in more of a coiling sideways channel. Traders will want to use options or calculated risk strategies until we can see further evidence of a trend building.
Bias: Bearish/Neutral
Previous Session Bias: Bearish/ Neutral
Resistance: 82.91*** (200 DMA)
Pivot: 81.63
Support: 79.95-79.00** Pocket Support
