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 yesterday as buying pressure triggered a close on the front foot at 14.00. The stochastics are rising with the %K/%D exiting the oversold area, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards 14.17, but the market needs to take out immediate resistance of the 40 DMA at 13.96. On the downside, the candle found support at 76.4% fib level at 13.79, and if the prices break through this level, we could see prices retreat back through the 100 DMA at 13.57 before 13.35. The three white soldier formation is a bullish signal, but futures need to take out 13.97 in order to confirm the outlook on the upside.

Ldn 2nd Month Sugar Futures 

Ldn sugar futures edged higher yesterday and managed to close above previous resistance of the 10 DMA at 396.70. The indicators suggest we could see higher prices in the near term. The stochastics are rising out of the oversold, and the MACD diff is negative and converging on the upside. The RSI is rising, and we expect futures to edge higher in the near term towards 40 DMA 398 with the 76.4% fib level at 403.14 the robust level on the upside. On the downside, if futures fail into 393, then we could see futures break back below the 391.10 before the long term support of 385. We expect futures to firm in the near term; however, as DMAs converge to provide tighter support and resistance, we could see a strong signal, given one of the levels is broken.

NY 2nd Month Coffee Futures

NY coffee futures edged lower yesterday as prices closed at 126.60. The indicators continue to favour the upside, however converging, with %K entering into the overbought area, suggesting waning buying pressures. A break below the 124.80 would bring into play the recent sessions’ support level at 124.15. Prices have been relatively well supported below the trendline, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 127.20 and then target the 23.6% fib level at 129.51 in the near term. The hanging man candle formation suggests that while there was a sell-off during the day, buyers had appetite for higher prices. The break above the resistance level, however, would confirm the ascending triangle formation.

Ldn 2nd Month Coffee Futures 

Lnd coffee futures held their nerve yesterday as intraday trading saw futures test appetite at 1387. This level held firm, and the prices closed at 1387. The stochastics are rising, and the MACD diff converged into positive territory, signalling a change of momentum in the near term. To confirm the change of trend, the market needs to take out support 1378 and then 40 DMA at 1368. To reaffirm the trend on the downside, prices need to take out the recent low. On the upside, break above the resistance at 1387 could set the scene for futures to take out the 1407 level before targeting 1422. The convergence of DMAs provides strong support for prices, and if these levels remain firm, we could see prices edge higher.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground yesterday as buying pressure prompted a test of 40 DMA 2516. The market closed at 2496. The stochastics are decreasing, with %K/%D converging in the oversold territory, suggesting a change to bullish momentum in the near term. The MACD diff is negative and diverging. Wednesday’s sharp break below the key DMA support points to a strong sell signal, however, we anticipate prices testing the moving averages once again today. A breach back above this level would bring into play the recent firm resistance of 10 DMA at 2569. Futures need to take out-trend resistance in order to confirm the trend. On the downside, the fall below previous day closing prices could trigger losses through the 38.2% fib level at 2414 and 200 DMA at 2409.

Ldn 2nd Month Cocoa Futures

Lnd cocoa futures took back some of the previous day’s losses, as buying pressure prompted a close back above 2245 at 2254 The stochastics trended lower, with %K/%D in the oversold territory and the MACD diff is negative and converging, pointing to waning selling pressure. Yesterday’s close above the previous day’s open/close suggests appetite for higher prices. The prices need to break above the 100 DMA at 2257 and then the 40 DMA at 2270 to prompt futures to regain upside conviction. On the downside, a break below Wednesday’s lows could pave the way for a test of support at 2186. The indicators point to diminishing appetite for lower prices in the near term.

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 FX

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

Daily Report Base Metals

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

Weekly Report FX Options

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

FX Monthly Report September 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. 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.