1. Reports
  2. Daily Softs Technical Charts

Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

Read risk warning

NY 2nd Month Sugar Futures

NY sugar futures recovered yesterday after strong selling pressure prompted a test of support at 12.50, appetite for prices at this level prompted a close at 12.68. The stochastics converging in oversold territory and the MACD diff is negative and diverging on the downside suggesting lower prices in the near term. The market failed to close above the 23.6% fib level at 12.69 could trigger some selling pressure towards 12.35. However, the downside tail and the doji suggests we could see prices push back towards 13 in the near term. The 40 DMA is expected to provide resistance if this level holds firm and then this could set the scene for lower prices in the longer run, the 10 DMA is set to cross below the 40 DMA. Conversely, if prices break above the 40DMA, futures need to take out 13.80 to confirm the trend in the long run.

Ldn 2nd Month Sugar Futures

Ldn sugar futures tested support at the 100 DMA at 353.23, the market closed at 357.10. The stochastics are in negative territory but are converged and we could see a buy signal on the horizon. The MACD diff is negative but is converging, in order to confirm the improved outlook on the upside prices need to break above previous trend resistance before targeting the 40 DMA and the 50% fib level. The market needs to break this band of resistance before targeting the recent higher at 383.43 at the 61.8% fib level. On the downside, a breach of the 100 DMA may trigger losses towards previous trend resistance around 340. The outlook is starting to improve on the upside and we could see futures edge higher in the near term.

NY 2nd Month Coffee Futures

NY coffee futures softened yesterday after breaching support at the 130 to test 128.30, futures partially recovered and closed back above 132 at 132.10. The stochastics are overbought but have converged and the MACD diff is positive but is also converging. Yesterday’s selling pressure was strong but the recovery back above 130 suggests an appetite for lower prices and may trigger gains through robust resistance at 134 towards 140. Selling pressure has increased and we could see futures reaffirm support at 126 once again. Secondary support stands at 121.50 which has been a strong level in recent months. We expect momentum to remain on the upside despite the indicators suggesting upside momentum is waning.

Ldn 2nd Month Coffee Futures

Ldn coffee futures sold off yesterday as selling pressure caused a close at 1411. The stochastics are falling and the MACD diff is negative and diverging suggesting lower prices. The sell signal from the stochastics and the upside tails above 1450 suggesting a rejection of higher prices suggests that we could see prices break below 1400. Secondary support stands at the 40 DMA at 1367 before targeting 1331. Conversely, if support at 1400 holds firm, this could improve the outlook on the upside in the long run. The key level on the upside remains 1479 and a break of this level would help confirm the recent upward trend.

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower yesterday to test 2520 before closing at 2555. The stochastics have given a sell signal and the MACD diff is positive and converging which suggests lower prices in the near term towards the 200 DMA at 2465. We expect the market to challenge the 200 DMA in the near term but a breach here would bring into play 2400 where the market has been well supported in the recent weeks. Yesterday’s tail on the downside does suggest some moderate buying pressure but in order to suggest an improvement in the outlook, futures need to close back above 2600.  

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures held their nerve yesterday after prices tested support at 2300 before closing at 2323.31. The stochastics are falling and have given a sell signal and the MACD diff is positive and converging. The RSI is also weakening, and the indicators suggest lower prices in line with the recent sell-off in prices. A breach of support at 2300 could set the scene for lower prices to 2270 with the key level around 2200 where the moving averages have converged to. On the upside, if the market holds above 2300 then this could trigger another challenge of 2400 before targeting 2450.

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 – Q3 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.