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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 edged higher yesterday as intraday trading saw prices tested support at 10 and 100 DMAs. The market closed above at 15.03. The RSI is rising, and %K/%D just converged on the upside in 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 close completely above the 10 and 100 DMAs at 14.95 and 14.99, respectively. A break above these levels towards 15.29 would confirm the strong bullish momentum. Conversely, appetite for prices below 14.52 could trigger a test of 38.2% fib level at 14.35, secondary support stands at 14.00. A break of 10 DMA below the 100 DMA level signals the outlook for lower prices, but we believe that prices should strengthen today.

Ldn 2nd Month Sugar Futures

Ldn sugar strengthened yesterday, as protracted buying pressure triggered a close on the front foot at 425.90. The stochastics are rising, with %K/%D is converging on the upside in the oversold. The MACD diff is negative and converging. Full bullish candle with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break completely above the 100 DMA level at 425.29. This would confirm the trend for rising prices, up to the 23.6% fib level 429.50. On the downside, support at 420 has proven to be strong, and if it is broken, this would strengthen the bearish momentum. This could also trigger losses towards the 410. Indicators point to higher prices, and with prices trading above the support of 420, we expect futures to edge marginally higher.

NY 2nd Month Coffee Future

NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 10 DMA level at 128.70. The RSI is rising, and %K/%D converged on the upside in 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 rejection of the support; prices need to take out 40 DMA at 130.09. A break above this level towards 131 would confirm the strong bullish momentum. Conversely, appetite for prices below the 38.2% fib level at 121.50 could trigger a test of support at 120. Long candle body points to more certainty in the bullish momentum, and a break above 40 DMA would confirm the outlook for higher prices.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged higher yesterday as intraday trading saw prices tested support at 1350. The market closed at 1357. The RSI is rising, while %K/%D is converging on the upside near the oversold. The MACD diff is negative but lacks the conviction to confirm the outlook. On the downside, a break below the key support level of 1350 could trigger losses back towards 38.2% fib level at 1332.72, a break below 1317 would confirm the outlook of lower prices in the longer term. On the upside, a break above the 100 and 10 DMA levels at 1375 and 1377, respectively, could trigger gains through 1385 towards 40 DMA resistance at 1395. A doji candle after the three black crows formation signals uncertainty about the outlook for lower prices, and the futures need to take out the 1350 level to confirm the outlook for falling prices.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground yesterday as protracted buying pressure prompted a test of the trend resistance to close on the front foot at 2425. The stochastics are rising, and the %K/%D is diverging out of the oversold, suggesting a buy signal in the near term. The MACD is also seen converging on the upside. To confirm another bullish candle, futures need to break above the 10 DMA at 2430 and then target the recent highs at 2465. On the downside, the break below the 2355 level could set the scene for lower prices towards the support of 2300. However, the market struggled below 2355 in recent months, suggesting we might see prices higher.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures held their nerve yesterday as intraday trading saw prices close at 2317. The RSI is falling, and %K/%D is positive and diverging on the upside. The MACD diff is negative and converging on the upside, suggesting growing buying pressure. To confirm the outlook for higher prices, futures need to take out the 10 DMA at 2319. A break above this level towards the 40 DMA level at 2330 would confirm the strong bullish momentum. Conversely, appetite for prices below 2300 could trigger a test of support of 2250; secondary support stands at trend support at 2233. The trading range has been narrow and a break above 10 DMA to confirm the outlook for higher prices.

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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