1. Reports
  2. Daily Softs Technical Charts

Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

Read disclaimer

NY 2nd Month Sugar Futures

NY Sugar Futures gained ground on Friday as appetite for prices below 10.40 triggered a close at 10.53. The RSI, stochastics, and MACD diff are improving on the upside suggesting improved buying pressure. However, the market has struggled above 10.50 in recent weeks, the upside tails suggest lack of appetite for higher prices. A break of near term resistance would set the scene for higher prices towards 11, helping to confirm the breakout of the pennant. Secondary resistance stands at 11.50. On the downside, rejection of trend resistance would trigger losses back towards 10 where the market has been well supported. A breach of support at 10 would reaffirm the downside trend. Secondary support stands at 9.51.

London 2nd Month Sugar Futures 

London Sugar Futures edged higher on Friday as buying pressure prompted a break of the 10 DMA and the market closed at 330. The stochastics improve on the upside and the MACD diff is positive and starting to diverge. However, prices need to close above the 61.8% fib level at 335.07. Secondary resistance stands at 50% fib level at 344.95. Buying pressure is starting to improve but prices are below key resistance keeping momentum on the downside. Rejection of higher prices could trigger another test of 320 in the medium term. Futures have been well bid at 320 this month, a break of this level could set the scene for a test of 315.

NY 2nd Month Coffee Futures

NY Coffee Futures edged lower on Friday as intraday trading caused a close at 117.55. The indicators are falling, the MACD diff is negative as the RSI, and stochastics are starting to fall. Rejection of prices at 121.50 has cap prices on the upside. The market needs to break below support at 100 DMA, with secondary support at 115.02. Superseding that level there is a band of support below the 108.55, to confirm the head and shoulders prices need to break 100. On the upside, prices need to break resistance at 121.50 with secondary support at 125.85 before targeting 130. The long term trend is still on the upside but prices need to break above 130 in the medium term to regain upside conviction.

London 2nd Month Coffee Futures 

London Coffee Futures edged lower on Friday as prices failed above 1200 to close at 1188. The stochastics are hovering above oversold territory but the MACD diff is negative and starting to diverge on the downside. The rejection of prices at 1200 could trigger a test of support at 1173. Support at 1150 has held firm recently but the long term trend is still intact. On the upside, the market has been well supported below 1150 and this band of support could help prompt futures to break back above 1200. Prices need to take out resistance at 1250 before targeting 1300. Prices above the 40 DMA have been rejected in recent months.

NY 2nd Month Cocoa Futures

NY Cocoa Futures surged on Friday as protracted buying pressure caused a close on the front foot at 2368. The stochastics have converged and the MACD diff is positive and diverging. The RSI is also rising and to confirm the bullish engulfing candle the market needs to take out 2400, the 40 DMA is closing in fast at 2430. A breach of the 40 DMA would help confirm the break out of the pennant. On the downside, prices failed at 2400 last time and this could cap gains on the upside. Rejection of prices at 2400 would set the scene for lower prices to 2200. The recent consolidation between 2200-2400 could end as prices take out 2400.

London 2nd Month Cocoa Futures

London Cocoa Futures soared higher on Friday as protracted buying pressure prompted a breach of resistance at 1800 to close at 1838.  The stochastics are improving as the MACD diff are also positive and diverging. The RSI is positive, to confirm the outlook of higher prices futures need to break through the double top at 1840. The 40 DMA has closed in and a breach of the band of resistance at 1840-1880 would confirm Friday’s candle. On the downside, the formation of a triple top at 1840 could trigger losses back to 1800, secondary support stands at 1729.

Contents

Disclaimer

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.

FX Monthly Report July 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. Cryptocurrencies are the focus of this month's FX Monthly report. The report includes a macroeconomic overview as well as desk comments and technical analysis on key currency pairs.

Quarterly Metals Report – Q3 2021

COVID cases are rising across the globe as the delta variant spreads, this is causing some nervousness in financial markets, especially with the higher inflation rhetoric. Commodity prices have fallen since the Fed changed their tune inflation, the dollar has stabilised which has also been a headwind to prices. The summer months are traditionally quieter for metals demand which could prompt metals to consolidate. If the delta variant continues to spread, we may see higher levels of stimulus for longer. As things stand stimulus levels are set to be tapered and this could be brought forward if inflation remains high. We expect markets to remain volatile but on lower volume through the summer months.