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 higher yesterday, breaking above resistance at 16.50 and closing at 16.59. The stochastics are trading in the overbought territory, and the MACD diff is positive and diverging, outlining recent bullish sessions. On the upside, futures need to break completely above 17.00 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the trend resistance at 17.28; this could strengthen the trend in the long run on the upside. A break back below the current support at 16.00 would bring into play the 10 DMA level at 15.83, which could set the scene for support at 15.50. We see prices edge higher in the near term, highlighted by recent bullish momentum and positive indicators, however, futures need to close above the current resistance to confirm the outlook for higher prices.

Ldn 2nd Month Sugar Futures

Ldn sugar futures consolidated yesterday as buying pressure broke resistance at the 10 DMA, triggering a close at 453.70. The stochastics are falling, with the %K/%D about to converge on the downside, outlining the deterioration in positive sentiment. The MACD, however, is negative and converging on the upside. In order to confirm another candle on the upside, the candle needs to break completely above 10 DMA at 449.83 today, which could pave the way for a test of 461 resistance level – the recent week's high. On the downside, a break below 440 could trigger further losses towards the 40 DMA at 432.72. A breach of this level would confirm the downside trend. A close back above yesterday's highs today would confirm the continuation of upside conviction and pave the way for further gains.

NY 2nd Month Coffee Futures

NY coffee futures gained ground yesterday as buying pressure triggered a close on the front foot at 129.30. The stochastics are rising with the %K/%D diverging towards the overbought area, as the MACD diff converged on the upside – a clear buy signal. This suggests we could see higher prices in the near term towards 130, but the market needs to take out immediate resistance of 23.6% fib level 129.51. A test of 131 resistance level would confirm a triple top candle formation. On the downside, the candle found support at previous day's close at 127.40, and if the prices break through this level, we could see prices retreat back through the 40 DMA at 126.37 before 126. The three white soldier formation is a bullish signal, but futures need to take out the longer-term resistance at 131 in order to confirm the outlook on the upside.

Ldn 2nd Month Coffee Futures

Lnd coffee futures gained ground yesterday as buying pressure prompted a close on the front foot at 1380. The stochastics are rising, with %K/%D converging on the upside in the overbought territory, the MACD positive and diverging, highlighting the outlook for a continued positive trend. Resistance at 23.6% fib level at 1385.57 has held firm in recent weeks, and this could trigger gains to 1395. On the downside, a break below 10 DMA support level at 1365 may set the scene for a correction to the downside. A break of that support could pave the way for lower prices through 1360. Near term momentum is on the upside, and we expect to see futures trade higher.

NY 2nd Month Cocoa Futures

NY cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at 38.2% fib level at 2414.03. This level held firm, and the future closed at 2391. The stochastics are falling, with %K trading in the oversold, and the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 2355, which could set the scene for futures to test 2365. On the upside, the market needs to take out resistance of 2374, which is the previous day's closing price, and then resistance at 10 DMA at 2435. Wednesday's candle broke out of the recent channel, however, long upper wick points to lack of appetite back above 2414. Futures need to close below the previous day's candle today to confirm the outlook for lower prices.

Ldn 2nd Month Cocoa Futures

Lnd cocoa held the nerve yesterday as intraday trading caused futures to close at 2280. RSI is rising marginally, and %K/%D falling and diverging, confirming the continuation of the negative trend. The MACD diff lacked conviction. On the upside, prices need to close above 10 DMA at 2286 and then target 2300 before 2327, which is the last weeks' highs. On the downside, the rejection of prices above 10 DMA could trigger losses back to the 40 and 100 DMA levels at 2273 and 2254, respectively. Buying pressure yesterday was weak, and indicators point to growing selling pressures. The doji candle confirms market uncertainty. The break of support at 40 DMA could confirm the outlook for lower prices in the near-term.



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 December 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we focus on China, highlighting the fundamentals for the macroeconomy, as well as any changes to the PBOC in the coming months. The recent cut in the risk reserve requirement suggests monetary loosening. We also outline the movement between the onshore and offshore currency for those looking to arbitrage or hedge their exposure. This analysis gives an indication of the average width of the spread what key levels to look out for.

Quarterly Metals Report – Q4 2021

The global macro picture is starting to present some downside risks in the near term as China's economy is set to slow further and supply-chain bottlenecks continue to cap growth. New orders and new export orders in China are contractionary, and we expect demand in Q4. Order backlogs and lead times for products will continue in Q4, limiting growth, and real consumption is weaker than it looks. Higher costs from shipping, raw materials and energy will take their toll on the consumer, and we expect end-user demand to suffer. The final piece of the jigsaw is the reduction in stimulus from central banks and how that will impact financial markets, bond yields, and the dollar has rallied while stocks corrected, but what will this trend continue?