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 prices gained ground yesterday appetite for prices above 15.79, triggering a close at 15.92. The stochastics favour the upside, with the %K stochastic converging on the upside while about to enter the overbought territory, suggesting we could see prices improve in the near term. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and yesterday’s candle suggests we could see prices challenge 16.10 in the near term. In the medium term, futures need to hold above that level and then target 16.12 – last week’s highs. On the downside, a break below the 10 DMA support level at 15.61 could trigger losses back to 15.50. The candle’s close above previous day’s highs confirms that there is an appetite for higher prices. We anticipate prices to improve today as buying pressure continues.

Ldn 2nd Month Sugar Futures

Ldn sugar futures held their nerve yesterday as intraday trading caused the market to close at 437.40. The futures broke below 10 DMA support level on Monday, yet still managed to close the day on the front foot. The stochastics are falling out of the overbought, and the MACD diff is negative and diverging, highlighting recent downside movement. To confirm the bearish indicators, futures need to break below the support at 40 DMA at 429.90, before targeting 427.60. A break below this level would confirm the trend on the downside. On the upside, to confirm the outlook of higher prices, futures need to close back above 440 and then target 10 DMA once again at 448.73. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and the 40 DMA support remains robust, we could see prices edge up in the near term.

NY 2nd Month Coffee Futures

NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 10 DMA at 126.20. The RSI is rising, while %K/%D has converged on the upside. The MACD diff is negative and converging, confirming rising buying pressures. On the downside, traders rejected prices above the 40 DMA yesterday and this could prompt a break below the key support level of 123. Protracted selling pressure could trigger losses back towards 61.8% fib level of 119.82, break below the 100 DMA at 118.86 would confirm the outlook of lower prices in the longer term. On the upside, a close above the 40 DMA at 126.26 could trigger gains through 127 towards 23.6% fib level at 129.51. Long candle body points to more certainty in the bullish momentum, and a close above 40 DMA would confirm the outlook for higher prices.

Ldn 2nd Month Coffee Futures

Ldn coffee edged higher yesterday as intraday trading caused futures to test appetite at 1371, the market closed below at 1363. Stochastics are falling, and %K/%D converged on the downside in the overbought territory, confirming a change of trend in the near term. The MACD diff is positive and converging, suggesting waning buying pressure. To maintain pennant continuation pattern, prices need to close above 1376 – recent weeks’ highs - and then target 1380. On the downside, the rejection of prices above 10 DMA at 1360 could trigger losses back to 40 and 100 DMA at 1349 and 1346 respectively. Buying pressure remains weak, the indicators point to an end of the bullish momentum, and the doji candle confirms market uncertainty. A break below 10 DMA would help confirm the change of trend.

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower yesterday as prices failed above 40 DMA and then closed below at 2428. The indicators are favouring the downside; the stochastics are falling, with %K/%D converging on the downside and edging close to the oversold area, and the MACD diff is negative and diverging on the upside, confirming further selling pressures. A close below the 38.2% fib level at 2414.03 would bring into play the support at 2400. On the upside, prices need to find support above 40 DMA at 2475 and the previous week’s high at 2520. Indicators point to further bearish momentum, however, prices have struggled to break out of the current support/resistance, and a break out of these levels would set the scene for a trend change.

Ldn 2nd Month Cocoa Futures

Ldn cocoa sold off yesterday as selling pressure prompted a test of support at 10 DMA. The market closed at 2288. The stochastics are falling, with %K/%D converging on the downside and the MACD diff is still lacking conviction. Yesterday’s full candle suggests a strong appetite for lower prices, and we could see futures continue to edge lower in the near term down to 40 DMA at 2270. Secondary support stands at 100 DMA at 2255, with that level holding firm in recent weeks. Conversely, support around 10 DMA could set the scene for higher prices back to the 2327 level. A break above that level would help to gain upside conviction. We believe that there is an 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 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.