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 surged higher yesterday as intraday trading caused prices to test resistance at 15.20 and then closed at 15.15. The stochastics are rising and have edged up further into the oversold area, and the MACD diff is positive and is diverging, outlining the improved outlook on the upside. Prices have failed into resistance at 15.20 in recent sessions, lack of appetite for prices above this level today could set the scene for futures to give back recent gains. Support stands at 15, with the secondary level at 14.52. On the upside, long candle body suggests an appetite for higher and a break through 15.20 could trigger gains to the resistance level at 15.29. In order to confirm the outlook for continued bullish trend, prices need to close above 15.30 and then at 15.50. Momentum favours the upside, and we expect this to remain the case in the near term.

Ldn 2nd Month Sugar Futures 

Lnd sugar futures surged higher yesterday as intraday trading caused prices to test resistance at 426 and then closed at 425.80. The stochastics are rising and are in the oversold area, and the MACD diff is positive and diverging, affirming positive sentiment in the market outlining. The RSI is rising, and we expect futures to edge higher in the near term towards robust resistance at 427.50. On the downside, prices failed above 426 last week, lack of appetite for prices above this level could trigger losses back to 420 before targeting 410, in the medium term. Superseding 410 support stands at the 10 DMA at 404.50. We expect futures to firm in the near term; however, the prices near to breach the near term resistance level before confirming the bullish outlook.

NY 2nd Month Coffee Futures 

NY coffee futures weakened yesterday as futures failed into the resistance at 129.50 and closed at 127.10 The candle tested trend support and partially recovered. The stochastics continue to decline and have emerged from oversold. The MACD diff turned negative, a clear sell signal. A break below trend support would confirm the rejection of the ascending triangle and bearish engulfing candle. This may pave the way for lower prices to 124.50 with the tertiary level at 121.50. Conversely, the reaffirmation of trend support would suggest higher prices and could trigger a close above 129.50, setting the scene for higher prices towards 132 and 135. Near term momentum favours the downside, but the reaffirmation of trend support suggests appetite for prices below 130 which could trigger a move to 129. The indicators are pointing to a further decline in prices in the near term.

Ldn 2nd Month Coffee Futures

Lnd coffee prices declined yesterday after prices rejected resistance at 1379. The market closed at 1365. The stochastics continue to weaken, and MACD diff has converged on the downside, suggesting we could see lower prices in the near term. To confirm the rejection of resistance and double top at 1392, prices need top break below the 100 DMA at 1364 and trend support could set the scene for a test of support at 1356. On the upside, if support at the 100 DMA holds firm could set the scene for higher prices through 10- and 40-day MA at 1379. Secondary resistance stands at the 76.4% fib level of 1391, which would help to confirm the ascending triangle. We expect prices to edge lower in the near term.

NY 2nd Month Cocoa Futures 

NY cocoa futures sold off yesterday as lack of appetite for prices above 2500; the prices closed at 2469. The close below 10 DMA at 2496 could trigger losses back to 2434 support in the near term. The stochastics are falling, and this could improve downside momentum, the MACD diff is starting to weaken, supporting the outlook for lower prices. A break of 2434 support may pave the way for lower prices to the 38.2% fib level at 2414. On the upside, if prices can take out the 10 DMA and then 40 DMA, this would confirm the trend, with the psychological level at 2600. We believe that there is an appetite for lower prices in the near term.

Ldn 2nd Month Cocoa Futures 

Lnd cocoa futures edged lower yesterday as prices found support at 10 DMA at 2239, and the market closed at 2245. The stochastics are neutral, with %K/%D seen converging on the downside, and the MACD diff is negative and converging, outlining the recent decline in prices after the rejection of prices at the 40 DMA level. The reaffirmation of support above 100 DMA could trigger gains towards the 40 DMA and previous trend support. In the long run, resistance at 2373 needs to be broken to regain upside conviction. Conversely, a breach of support at 10 DMA may set the scene for lower prices to 2200. If futures take out of this level, this would reaffirm the trend on the downside. We expect prices to weaken 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 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.