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 prices gained ground yesterday as buying pressure triggered a break of previous resistance at 13.50 to close at 13.61. The stochastics are rising further in overbought and the MACD diff is positive and diverging. The RSI is rising and we expect prices to continue on the upside. Yesterday’s candle was full and this helps confirm the outlook on the upside and a challenge resistance at 13.81. The trend is firmly on the upside and we expect this to continue in the long run, a break of 13.80 would help to confirm the ascending triangle. On the downside, a rejection of prices at 13.80 could trigger losses back through trend support to 12.60. Secondary support stands at 12 before the 100 DMA at 11.54 where we saw the market well supported in June. In the near term, we expect further buying pressure and a challenge of 14.

Ldn 2nd Month Sugar Futures 

Ldn sugar prices were supported yesterday as intraday trading caused prices to close at 380.90, above resistance at 380. The stochastics are rising further into overbought territory, as the MACD diff is positive. The ADX and DMI are rising and this affirms upside sentiment. The close above 380 helps to confirm the doji and reaffirmation of support at the 50% fib level earlier this week. In order to confirm the outlook of higher prices and the rejection of the inverse head and shoulders, futures need to take out 383.43 and then target 400. On the downside, apprehension amongst traders above 380 could trigger losses back to the 50% fib level and then secondary support at 40DMA. We anticipate prices to edge higher but resistance at 383.43 could hinder gains.

NY 2nd Month Coffee Futures 

NY coffee prices gained ground yesterday appetite for prices below 115 triggered a test of the 10 DMA and close at 118.10. The stochastics favour the downside but the %K stochastic is starting to recover suggesting we could see prices improve in the near term. The MACD diff is negative and starting to converge suggesting an improved outlook. The RSI is rising and yesterday’s candle suggests we could see prices challenge 121 in the near term. In the medium term, futures need to hold above 121 and then break the double top at 130. On the downside, rejection of prices around 120 ay trigger losses back to 115. Superseding this level, support stands at previous trend support at 108. We anticipate prices to improve today as buying pressure continues.

Ldn 2nd Month Coffee Futures 

Ldn coffee futures surged higher yesterday as protracted buying pressure prompted a close at 1382. The RSI is rising, and the MACD diff is negative and converging on the downside suggesting an improved outlook on the upside. The stochastics are rising and but are in neutral territory, and this improves upside impetus, prices need to close above 1400 and then take out the recent high at 1420 in order to confirm the outlook of higher prices. The bullish engulfing candle suggests upside momentum and the tails below 1330 suggest an appetite for higher prices. On the downside, a rejection of 1400 may prompt a test of 1350 before targeting robust support at 1330. In order to suggest a change in trend, prices need to break 1330 and then 1300. We expect prices to gain in the near term but futures need to break above 1400 to confirm the bullish candle.

NY 2nd Month Cocoa Futures 

NY cocoa futures firmed yesterday as intraday trading saw prices break back above the 200 DMA, and closed at 2480. The stochastics are starting to fall but remain in overbought territory, and the MACD is converging on the upside which also indicates an increase in selling pressure. Rejection of prices above the 200 DMA may set the scene for lower prices towards 2400. Secondary support stands at the 40 DMA at 2282, a challenge of this level in the medium term would help to confirm the softening indicators. On the upside, prices need to gain a footing above the 200 DMA and then take out the recent high at 2535, secondary resistance stands at 2589.

Ldn 2nd Month Cocoa Futures 

Ldn cocoa futures consolidated yesterday as intraday trading saw prices test support at 2200, the market closed at 2218.36. The stochastics are falling but remain overbought and the MACD diff is positive and converging, this suggests reduced buying pressure but to outline a correction on the downside, prices need to break below the 100 DMA and then target the 40 DMA at 2071. However, activity holds above the 100 DMA and the reaffirmation of support at 2200 yesterday suggests higher prices in the near term towards 2260 and then 2300.

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.