1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 21122022

NY sugar futures jumped higher yesterday and managed to close the resistance of 19.20 at 19.22. The indicators suggest we could see higher prices in the near term before the trend change. The stochastics are rising into the overbought, and the MACD diff is positive and diverging on the upside. The RSI is rising, and we expect futures to edge higher in the near term towards 19.50, with the 19.69 level next in line. On the downside, if futures fail back into 19.00, then we could see a break back below the 10 DMA at 18.80 before the long-term support of 40 DMA at 18.31. We expect futures to firm in the near term, and the three white soldiers’ formation confirms the appetite for higher levels. Moreover, a rounding bottom is forming and could suggest a continuation of a longer-term uptrend.

Tables 1 (251)

Ldn 2nd Month Sugar Futures

Ldn Sugar 21122022

Ldn sugar futures jumped higher yesterday as prices closed above 540 at 543. The indicators favour the upside, as %K/%D is rising and diverging into the overbought. MACD diff is positive and diverging, outlining recent buying pressures. A break above 540 would bring into play the November highs of 552.40 before 560. On the downside, futures need to break back below 10 DMA at 532.23 and then target 40 DMA at 523.58 in the near term. The jump yesterday suggests further upside momentum, and the indicators point to a continuation of this trend. In line with NY sugar, a rounding bottom is seen forming and could suggest further upside. To confirm this, the resistance at 552.40 needs to be broken above first.

Tables 2 (250)

NY 2nd Month Coffee Futures

NY Coffee 2112222

NY coffee futures edged higher but failed to break completely above the 40 DMA level before closing at 167.60. The stochastics are seen rising once again after nearly converging on the downside, and the MACD is positive but has remained flat in recent days, suggesting slowing upside momentum. To suggest another positive candle body, the futures first need to break above the 40 DMA at 166.19 before targeting the 174.36 level. The prices have struggled above this level, forming a double top in recent weeks, and we expect the futures to struggle above this level once again in the near term. If this level holds, we could see some downside back to 10 DMA at 164.82 before 160. We expect the range-bound momentum to continue in the longer term.

Tables 3 (249)

Ldn 2nd Month Coffee Futures

Ldn Coffee 21122022

Ldn coffee futures held their nerve yesterday as intraday trading saw prices close at 1868. The RSI is rising, and the %K/%D is negative and diverging, but the downside momentum seen slowing. Likewise, the MACD diff is positive and converging but stalling on the downside. The indicators point to lower prices in the near term before a pause, and we expect the support level of 40 DMA at 1847 to hold and keep the prices supported at current levels. Conversely, appetite for prices above the 10 DMA at 1871 could trigger a test of resistance of 1875; tertiary resistance stands at 1900. A positive candle after a doji candle signal market momentum has improved slightly but not enough to suggest the outbreak out of the current trading range.

Tables 4 (251)

NY 2nd Month Cocoa Futures

NY Cocoa 2112222

NY cocoa futures held their nerve yesterday as intraday trading saw prices close at 2504 as it struggled above 10 DMA once again. The RSI is flat, and %K/%D is edging lower but slowing, which could suggest a marginal downside before a trend reversal. The MACD diff is negative and flat, suggesting an appetite for downside has waned, but to suggest appetite for higher prices, the futures need to break above 10 DMA at 2511, a firm resistance, to trigger the momentum. A break above this level towards 2530 would confirm the growing bullish momentum. Conversely, appetite for prices below the 2500 level could trigger a test of support at 40 DMA at 2464. A gravestone doji candle shows rejection of higher prices as futures struggle above that level; if the resistance is broken, we expect prices to strengthen in the near term, confirming the ascending triangle pattern.

Tables 5 (249)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 21122022

Ldn cocoa futures jumped above the 1900 resistance yesterday, the level they struggled to break in recent days, to close at 1914. The stochastics have converged on the upside in the oversold, a strong buy signal, and the MACD is negative and now converging, which could point to higher appetite on the upside. Yesterday’s volumes have also jumped higher, driving the incline in prices above the near-term resistance. To confirm a continuation of this momentum, the prices need to test the trend line at 1930 before the 50 DMA at 1941. Alternatively, a break back below the current levels could test the support at 100 DMA at 1893. We expect the prices to hold above 1900 in the near term.

Tables 6 (250)




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