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Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

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NY 2nd Month Sugar Futures

NY sugar futures consolidated yesterday as buying pressure prompted a close above the resistance at the 10 DMA, triggering a close at 15.89. The stochastics are on the rise and have given a buy signal, with the %K/%D converging on the upside in the oversold territory, outlining the improvement in positive sentiment. The MACD is negative and converging, supporting the outlook for growing buying pressure. In order to confirm another full candle on the upside and the positive indicators, prices need to take out 16.00 today, which could pave the way for a test of 16.12 resistance level. On the downside, a break below 15.50 could trigger further losses towards 15.29. A breach of this level would confirm the downside trend. A close back above recent highs today would regain upside conviction and pave the way for further gains.

Ldn 2nd Month Sugar Futures

Ldn sugar futures gained ground yesterday as protracted buying pressure prompted a test of the 450.80 level to close on the front foot at 450.20. The stochastics are rising, and the %K/%D seen diverging out of the oversold territory, highlighting growing buying pressures. The MACD diff is negative and converging on the upside. On the upside, futures need to break completely above 10 and 40 DMAs at 444.54 and 445.35, respectively, and then target the 452.80. On the downside, the break below 440 could set the scene for lower prices towards the support of 427.60. However, the market struggled below 440 in recent sessions, and a possible cross of 10 DMA above 40 DMA today could confirm a strong buy signal. We believe that prices will strengthen in the near term. 

NY 2nd Month Coffee Futures

NY coffee futures edged higher yesterday after prices failed above the 10 DMA and closed at 132.35. The stochastics are rising, with %K/%D about to converge on the upside, and the MACD diff is negative and converging, suggesting we could see a change in momentum in the near term. On the downside, futures need to break below the support of 131 in order to confirm the outlook of lower prices. This could trigger further losses towards 130 and then 23.6% fib level at 129.51. Conversely, the reaffirmation of support at 10 DMA at 132.27 could set the scene for higher prices back to 135. The 10 and 40 DMAs are closing in, creating a narrow trading range. The positive indicators point that we could see a break above 10 DMA in the near term, and that would confirm the bullish momentum.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged higher yesterday as intraday trading saw prices tested support at 10 DMA. The market closed at 1419. The RSI is rising, and %K/%D just converged on the upside, close to the oversold territory. The MACD diff is negative and converging, suggesting waning selling pressure. The indicators point to higher prices in the near term, and to confirm the bullish trend, prices need to take out 10 DMA. A break above this level towards 1450 would confirm the strong bullish momentum. Conversely, appetite for prices below 1400 could trigger a test of 23.6% fib level at 1385.57; secondary support stands at 40 DMA at 1375. A doji candle signals uncertainty about the outlook for higher prices, and the futures need to take out the 10 DMA to confirm the outlook for a positive trend.

NY 2nd Month Cocoa Futures

NY cocoa futures held their nerve yesterday as intraday trading saw prices close at 2593. The RSI is rising, and %K/%D is negative and converging on the upside. The MACD diff is positive and about to converge on the upside, suggesting growing selling pressure. The indicators paint a mixed picture, and to confirm the outlook for higher prices, futures need to take out the 10 DMA at 2597. A break above this level towards the 61.8% fib level at 2612.97 would confirm the strong bullish momentum. Conversely, appetite for prices below 2550 could trigger a test of support of 2523; secondary support stands at 50% fib level at 2513.50. A positive doji candle after long bullish candles signals market uncertainty, and narrowing support and resistance DMAs are creating a tight trading range, a break out of which would set the scene for strong momentum. We anticipate prices on the front foot in the near term; however, futures need to break above 10 DMA to confirm the momentum.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot at 2482. The stochastics are falling, with %K/%D seen converging, and the MACD diff has lacked conviction in the last couple of sessions. A close above 10 DMA at 2480 suggests we could see higher prices in the near term towards 2531, but the market needs to close above the immediate resistance at 2500 beforehand. On the downside, prices need to break below 2450 towards the 38.2% fib level at 2434, and then we could see prices retreat back to 2400. Long upper wick points to the appetite for higher prices; however, futures need completely break above 10 DMA in order to confirm 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.

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