1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 04112022

NY sugar futures strengthened yesterday as moderate buying pressure triggered a close on the front foot at 17.48. The RSI is rising, while %K/%D is diverging towards the overbought. Likewise, the MACD diff is positive and diverging, a continued buy signal. On the upside, finding support above the 40 DMA at 17.55 could trigger gains through 17.62, the recent highs, towards the 100 DMA at 17.98. On the downside, a break below the 10 DMA at the 17.16 level could trigger losses back towards 17.00. 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, as the prices closed higher and the bullish outlook is on the horizon.

Tables 1 (232)

Ldn 2nd Month Sugar Futures

Ldn Sugar 04112022

Ldn sugar futures edged higher yesterday as prices closed at 506.40. The indicators continue to favour the upside, with %K/%D diverging into the overbought and MACD diff is positive and diverging, suggesting growing buying pressures. A break back below the 40 DMA level at 505.37 would bring into play the recent support level at 10 DMA at 496.22. In order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 512.90 and then target the recent highs of 100 DMA at 516.15 in the near term. The hanging man candle formation suggests that prices struggled above the 40-day moving average; however, today’s break above it confirms further upside momentum in the near term.

Tables 2 (231)

NY 2nd Month Coffee Futures

NY Coffee 0411222

NY coffee futures softened yesterday as moderate selling pressures trading caused futures to test appetite at the 165.95 level once again and then close at 168.38. The stochastics are once again converging on the downside in the oversold, as futures struggle to break above the current levels; the MACD diff, however, is negative and converging. To suggest an outlook on the upside, futures need to close back above 10 DMA at 176.48 and then target 182.50. On the downside, if prices fail above 170, this could trigger losses towards 160 in the medium term. With the 10 DMA resistance level firmly in place, the upside for the near term is being capped, and to suggest a break higher, the futures need to break above this level.

Tables 3 (231)

Ldn 2nd Month Coffee Futures

Ldn Coffee 04112022

Prices weakened yesterday as moderate selling pressure triggered a close at 1848. The stochastics are rising moderately, and %K/%D is diverging on the upside in the oversold, signalling a potential change in trend in the near term. The MACD is negative and converging slowly, and yesterday’s doji candle formation supports market indecisiveness for higher prices. Prices have been capped by trend resistance in recent sessions, and in order to confirm the change of momentum, prices need to break above the current resistance at 10 DMA at 1876 and then 1900. Conversely, a break below the 1827 support level could set the scene for a test of 1800. We expect prices to consolidate recent gains today and remain on the front foot.

Tables 4 (232)

NY 2nd Month Cocoa Futures

NY Cocoa 0411222

NY cocoa futures edged higher yesterday as trading saw prices close at 2372. The stochastics continue to edge closer to the oversold, and the MACD diff is positive and diverging, suggesting a continuation of upside momentum. To confirm this, a break above 2400 could set the scene for bullish momentum towards 2420. Conversely, a break of the trend line at 2370 could trigger losses through 10 and 40 DMA support levels at 2334. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above the previous day’s highs, we could see the futures retesting this level in the near term.

Tables 5 (230)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 04112022

Ldn cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 1952. The RSI is rising, while %K/%D are diverging on the upside. The MACD diff just converged on the upside, a strong buy signal. On the upside, a break above 1950 could trigger gains through the resistance of 1970– November 2019 highs. On the downside, a break back below the support level of 1900 could trigger losses back towards 50 DMA at 1880; this would confirm the outlook of lower prices in the longer term. The market rally has been strong, with three white soldiers' formation confirming the strength of bull sentiment. We could see prices trend even higher today, but support at 1950 needs to hold firm for this to be the case.

Tables 6 (231)



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