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 edged lower yesterday as prices failed above the previous day’s highs and then closed below at 15.79. The indicators are favouring moderate upside movement; the stochastics are rising, with %K/%D converging on the downside and edging close to the overbought area, and the MACD diff is positive and converging on the downside, confirming waning buying pressures. A break below the 15.70 would bring into play the support at 10 DMA 15.50. On the upside, prices need to find support above 16.00 and the previous day’s highs of 16.12 before targeting trend resistance at 16.25 in the near term. Indicators point to further decreasing buying appetite, and a fall below the current support of 15.79 would break futures out of the wedge formation, which could further intensify the bearish momentum.  

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened yesterday after prices failed above the 50.0% fib level of 460.90, prompting a close on the back foot at 456. The stochastics are oversold, with %K/%D seen converging on the downside, and the MACD diff is also converging on the downside, outlining the weakness in the market. The dips have been poorly bid, and to confirm the full downward candle, the futures need break below the 452.80 level before targeting 449.60 and 10 DMA at 448.29 respectively. Alternatively, if prices can gain a footing back above yesterday’s highs at 461, the bulls could then target 467.60 in order to regain upside conviction. We anticipate prices to remain on the back foot in the near term.

NY 2nd Month Coffee Futures

NY coffee futures held their nerve yesterday as moderate buying pressure prompted a close above yesterday’s lows of 123.15 at 123.05. The stochastics are falling, and the %K/%D converged on the downside, highlighting growing selling pressures. The MACD diff is negative and diverging. To confirm bullish candle, futures need to close above yesterday’s highs of 123.60 and then target Wednesday’s highs at 125.55. On the downside, the break below the current support level of 123.15 could set the scene towards the 38.2% fib level at 121.50, confirming the double bottom pattern. However, the market struggled below this level in recent sessions, and a break below is needed to confirm the bearish outlook in the near term.  

Ldn 2nd Month Coffee Futures

Ldn coffee futures sold off yesterday as lack of appetite for higher prices helped to close on the back foot at 1362. Stochastics are converging in the overbought territory, suggesting further selling momentum in the near term. MACD diff is positive and converging, supporting the outlook for deteriorating prices. The last two days formed a bearish engulfing pattern, a sign of an impending market downturn. The sell-off yesterday and a long lower wick suggest further selling pressure below the current support level, and the indicators support lower prices. A break below the 40 DMA at 1350 could set the scene for a test of support at 100 DMA at 1345. The 10 DMA level has crossed above the longer-term DMA, which could provide support for prices in the near term. On the upside, support around this level would help reaffirm the bullish trend in the near term towards 23.6% fib level of 1385. While indicators point to waning buying pressures, we expect prices to be supported above current DMAs today.

NY 2nd Month Cocoa Futures

NY cocoa sold off sharply yesterday, as protracted selling pressure triggered a close on the back foot at 2437. The stochastics are falling, and %K/%D converged on the downside, sending a sell signal. The MACD diff, however, lacks convictions, pointing to prevalent market uncertainty. The break below the current support of 100 DMA at 2435 could set the scene for lower prices towards the 38.2% fib level of 2414. A break below this would confirm the trend for falling prices, down to 2400. On the upside, resistance at 2500 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 2523. While prices have been range-bound, full candles on both upside and downside suggest increasing appetite to break out of the current levels.

Ldn 2nd Month Cocoa Futures

Ldn cocoa weakened yesterday, as protracted selling pressure triggered a close on the back foot at 2287. The stochastics are rising, however converging on the downside, signalling a potential change of trend. The MACD diff is positive, however, lacks the conviction to suggest an outlook. Full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 10 DMA support level of 2287. This would confirm the trend for falling prices, down to the 40 DMA at 2266. On the upside, resistance at 2327 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 2355. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall 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 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 – Q1 2021

Chinese economic data continued to recover yet at a more moderate rate, underpinning the performance of base and ferrous metals. Vaccination rates will remain key, but Chinese New Year is likely to keep growth more subdued for the majority of February. In this report, our analysts provide fundamental and technical analysis and forecasts for base and precious metals, iron ore and steel. We assess how this past quarter impacted the metals market and outline what data points to look at to help navigate the next few months in the market.