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 held the nerve yesterday as intraday trading caused futures to close at 15.35. RSI is rising marginally, and %K/%D converged on the upside, confirming the change of trend in the near term. The MACD diff is negative and converging, suggesting waning selling pressure. The DMI and ADX outline the positive trend we have seen in recent sessions, and the indicators converging suggests an end to that trend in the near term. To maintain positive momentum, prices need to close above 15.50 and then target 15.80, which is the last weeks' highs. On the downside, the rejection of prices above 15.30 could trigger losses back to the 10 DMA level at 15.16 before targeting trend support at 15.03. Buying pressure remains weak; however, the indicators point to the strengthening of that momentum. The doji candle confirms market uncertainty. The break of resistance above 15.50 and a full bullish candle could confirm the outlook for higher prices in the near-term.

Ldn 2nd Month Sugar Futures

Lnd sugar futures gained ground yesterday as buying pressure prompted a close on the front foot at 442.80. The stochastics are rising, as %K/%D converged on the upside; the MACD negative and converging, highlighting the outlook for a change of trend in the near term. Resistance at 449.60 has held firm in recent weeks, and this could trigger gains to 452.80. On the downside, 440 is the nearest level before the 10DMA, and a break below 10 DMA support level at 434.97 may set the scene for a correction to the downside. A break of that support could pave the way for lower prices through 430. Near-term momentum is on the upside; a break above 449.60 is needed to confirm the outlook.

NY 2nd Month Coffee Futures

NY coffee futures buckled yesterday as prices tested the previous day's highs and then closed below at 125.55. The indicators are favouring the downside; the stochastics are falling, with %K/%D converging on the upside and edging close to the oversold area, and the MACD diff is negative and diverging on the upside, confirming further selling pressures. A break below the 40 DMA at 125.43 would bring into play the support at 125. On the upside, prices need to find support above 10 DMA at 126.56 and the previous day's high at 129.30 before targeting 130 in the near term. Indicators point to further bearish momentum; however, prices have struggled to break out of the DMAs support/resistance, and a break out of these levels would set the scene for a trend change.

Ldn 2nd Month Coffee Futures

Lnd coffee futures softened yesterday after finding support above 13.17. The market closed at 13.18. The stochastics have converged on the upside, however, are seen narrowing once again, and the MACD diff lacks convictions, suggesting that the price increase that we saw in the last couple of sessions might be short-lasting. A break below 1317 would bring into play the support at 1300; however, prices have been rejecting that level. A subsequent break of 1300 would help to confirm the long term descending triangle and could trigger losses towards 1277. Conversely, on the upside, futures need to find support above 10 DMA at 1322 and then break above the previous day's high of 1339 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the 40 and 100 DMAs, with the shorter-term about to cross below the longer-term one, which could be a sell signal. The indicators point to a bearish outlook, and long candles signal increased market certainty; however, prices need to break below the current support levels to confirm the trend.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher yesterday breaking above resistance at 10 DMA and closing at 2499. The stochastics are rising, with %K/%D just converging on the upside, and the MACD diff is positive and diverging, sending a buy signal. The reaffirmation of support below the 10 DMA at 2484 could set the scene for higher prices back to test the 40 DMA level at 2504. On the downside, futures need to break below the support of 10 DMA order end the recent sessions' bull trend. Indeed, the 10, 40 and 100 DMAs are providing robust support/resistance levels. Three white soldiers formation in the previous sessions confirms the outlook or higher prices and a break above 10 DMA highlights the appetite for higher prices. The market needs to gain a footing above the 40 DMA in the immediate term to improve the outlook.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot above 10 DMA at 2311. The stochastics are rising, with the %K/%D sending a buy signal, as the MACD diff is positive and diverging on the upside. This suggests we could see a continuation of a bull trend in the near term, with prices edging towards 2327, before testing the 2355 level, the recent weeks' highs. On the downside, the candle found support at 40 DMA level at 2273, and if the prices break through this level, we could see prices retreat back through the 100 DMA at 2260 before 2250. The three white soldier formation is a bullish signal, but futures need to find support above 10 DMA in order to solidify the outlook on the upside.

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.