1. Soft Commodities Outlook
  2. Softs Technical Charts

NY 2nd Month Sugar Futures

NY Sugar 27032024

NY sugar futures edged higher yesterday as intraday trading saw prices supported above the 10 DMA. The market closed at 22.01. The %K/%D is now overbought but is showing signs of convergence. Likewise, the MACD diff is positive and now flat, suggesting waning buying pressures. The indicators point to potentially lower prices in the near term. To confirm the robust resistance at 22.00, prices need to take out 10 DMA. A break below this level towards 21.50 and 21.00 would confirm the growing bearish momentum. Conversely, appetite for prices above the 40 DMA at 22.05 could trigger a test of 22.50. While yesterday's candle pointed to stronger conviction on the upside, the resistance at 22.00 is still robust and can prompt prices back to 21.50 and 21.00 in the near term.

Tables 1 (380)

Ldn 2nd Month Sugar Futures

Ldn Sugar 27032024

Ldn sugar futures edged higher yesterday, following the recent trend on the upside, prompting a break above resistance at 40 DMA and closing at 626.40. However, the indicators point to a potential end of the recent bullish trend. The stochastics are now falling, with %K/%D just converging on the upside in the overbought. The MACD diff is positive and converging. The reaffirmation of resistance at 628.10 could set the scene for lower prices back to test the 10 DMA level at 612.85. On the upside, futures need to break above the robust 628.10 level in order to end the recent sessions' bull trend. Indeed, the 10, 40 and 100 DMAs are providing robust support/resistance levels. The market needs to gain a footing above the 630 in the immediate term to improve the outlook on the upside.

Tables 2 (379)

NY 2nd Month Coffee Futures

NY Coffee 27032024

NY coffee futures strengthened yesterday, prompting a break above the 40 DMA to 187.25. The %K/%D is diverging on the upside. Likewise, the MACD diff is positive and is starting to show signs of strength, which points to further gains in the near term. On the upside, finding support above the 40 DMA at 185.55 could trigger gains through 190 - the recent highs - towards 192.42. On the downside, a break below all the moving averages could signal a strong sell signal and trigger losses back towards 180 and 175. The appetite for the upside is building, but resistance at 190 is key to driving a longer-term outlook on the upside.

Tables 3 (378)

Ldn 2nd Month Coffee Futures

Ldn Coffee 27032024

Ldn coffee prices gained ground yesterday as prices retested the 3400 level. This level held firm, and futures closed at 3375. The stochastics favour the upside, with the %K/%D diverging in the overbought, suggesting we could see prices strengthen further in the near term. The MACD diff is also positive and diverging. Given yesterday's candle, we could see prices challenge 3400 once again today. In the medium term, futures need to hold above that level and then break the double top to confirm further gains. On the downside, the rejection of prices around these levels could trigger losses back to 10 DMA at 3344. Despite a positive candle yesterday, buying pressure is weak, and we expect marginal gains in the near term.

Tables 4 (380)

NY 2nd Month Cocoa Futures

NY Cocoa 27032024

NY cocoa futures strengthened yesterday, testing new highs at 9553, but struggled to maintain positive momentum, prompting prices to edge lower to 9163. The %K/%D is overbought and converging, and the MACD diff is positive, but the upside momentum is stalling. Indicators point to waning buying pressures; however, to confirm the end of the bull trend, futures must break below the robust support levels, now at 9000, 8000, and 10 DMA at 7829. Only then will the trend reversal solidify, and yesterday's shooting star formation will be confirmed. In the meantime, if the 9000 level holds, this could set the scene for further gains to 10000, keeping prices at a series high.

Tables 5 (378)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 27032024

Ldn cocoa strengthened yesterday, as marginal buying pressure triggered a close on the front foot at 7613, after rejecting prices above the 8000 level. The stochastics send a strong sell signal, with %K/%D converging on the downside in the overbought. The MACD diff is positive, but bullish momentum is waning. A short, bullish candle body with a long upper wick suggests a lack of appetite for higher prices.; this could set the scene for prices to break and revert back to 7000. This could also trigger losses towards 10 DMA at 6573. On the upside, a breach of resistance at 8000 would strengthen the bullish momentum. This would continue the trend of rising prices. Indicators point to lower prices, and with a candle with a longer upper wick, we could see prices struggle above the 8000 level in the near term.

Tables 6 (379)




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