1. Reports
  2. Daily Softs Technical Charts

Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

Read risk warning

2nd Month NY Sugar Futures

NY sugar futures edged lower yesterday as prices failed above 10.50 prompting a close at 10.38. The stochastics are in negative territory but are starting to bottom out. The MACD diff is positive and starting to improve on the upside. The 10 DMA has provided resistance in recent sessions, and prices need to take out this level to regain upside traction. The upside tails continue to suggest lack of appetite for higher prices but a close above the 10 DMA and then 11.50 in the medium term. On the downside, lack of appetite for prices above 10.50 suggests we could see futures soften back towards 10. To confirm the shooting star, and the descending triangle prices need to close below 10.

2nd Month London Sugar Futures

London sugar futures edged lower yesterday as resistance at the 10 DMA held firm, and prices closed At 324.10. The stochastics are falling, but the MACD diff is positive and starting to diverge. Support at 322.85 at the 76.4% has held strong in recent session. Appetite for prices below this level suggests we could see prices breach resistance at the 10 DMA before taking out the 50% fib level at 344.95. On the downside, futures need to break support at 320 to confirm the descending triangle. This could set the scene for losses to 316 before 303.

2nd Month NY Coffee Futures

NY coffee futures gained yesterday protracted buying pressure prompted a test of 121.50; the market closed at 121.05. The stochastics are starting to converge; the MACD diff is negative. The RSI is starting as well, but prices are below key resistance at 121.50, this resistance level has held firm in recent weeks, prompting a retracement back to 115. However, the reaffirmation of support on Monday could set the scene for higher prices back towards 130 in the long run. The full candle yesterday suggests improving outlook on the upside. On the downside, futures need to close below 115 with secondary support at 110.

2nd Month London Coffee Futures

London coffee futures edged higher yesterday as prices traded a narrow range and closed at 1233. The stochastics are falling, and the MACD diff is positive and diverging on the upside. Prices are trading a narrow range and hold above key support at 1210; this could set the scene for higher prices to 1263. This resistance level has held firm in recent months, triggering a retracement back to 1200. In the long run, prices need to take out resistance at 1323. On the downside, a break of support at 1200 could trigger losses to 1173.

2nd Month NY Cocoa Futures

NY cocoa futures have been well supported in a recent session, buying pressure prompted a close at 2392. The stochastics are rising, and the gap between them suggests that momentum is on the upside. The MACD diff is diverging helping to confirm positive sentiment. Buying pressure could trigger gains through immediate resistance at 2400 towards 2430. Tertiary resistance stands at 2500. On the downside, if prices fail at 2400, this could trigger gains back to 2346 before trend support at 2243.

2nd Month London Cocoa Futures

London cocoa futures gained ground yesterday as buying pressure prompted a close at 1846 helping to confirm the rejection of the descending triangle. The stochastics are surging higher; the MACD diff is positive and diverging on the upside. This gives the market a positive impetus, and we could see futures test support at 1875. If this level holds firm, futures could trigger losses back to 1800 and would keep momentum on the downside. Conversely, a break of this level would set the scene for higher prices to 1927.

Contents

Risk warning

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.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report Base Metals

Daily market commentary on LME aluminium, copper, lead, nickel, tin and zinc.

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

Quarterly Metals Report – Q2 2020

Our analysts provide fundamental and technical analysis and forecasts for base and precious metals, iron ore and steel. We assess how COVID-19 has impacted the metals market and outline what data points to look at to help navigate the next few months in the market.