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 held their nerve on Friday as intraday trading saw futures test appetite at 15.64. This level held firm, and the future closed at 15.41. The stochastics are rising, with %K trading out of the oversold, and the MACD diff converged on the upside, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the trend resistance at 15.64, which could set the scene for futures to take out the 40 DMA level at 15.69. On the downside, the market needs to take out support at 100 DMA at 15.03 and then support at 10 DMA at 14.96. The 10 DMA level crossed below 100 DMA recently but is seen crossing back above it and, however the rejection of previous trend support could trigger losses through 14.52 which would confirm a breakout on the downside. 

Ldn 2nd Month Sugar Futures

Ldn sugar futures gained ground on Friday as buying pressure triggered a close on the front foot above trend resistance at 432.90. The stochastics are rising, with the %K/%D diverging on the upside, as the MACD diff is negative and converging on the upside. This suggests we could see a continuation of the positive momentum in the near term, with prices edging towards 40 DMA level at 441.48, before testing the 449.60 level, the recent weeks’ highs. On the downside, the candle found support at 23.6% fib level at 429.50, and if the prices break through this level, we could see futures retreat back through the 100 and 10 DMAs at 426.04 and 425.49, respectively. The three white soldier formation is a bullish signal, but futures need to find support above 40 DMA in order to solidify the outlook on the upside.

NY 2nd Month Coffee Futures

NY coffee futures softened on Friday after finding support at 128.80. The market closed at 129.15. The stochastics are edging towards the overbought territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through the resistance of 40 DMA at 130.42. A break above this level would bring into play 135. On the downside, futures need to break back below 127.35 – the 10 DMA level - in order to confirm downside momentum. The break of support here could trigger losses towards the level at 100 DMA at 126.57; this could strengthen the trend in the long run on the downside. Firm resistance at 40 DMA suggests a lack of appetite above the level, and we expect prices to retreat in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee prices softened on Friday as prices were supported at the 1360 level, the market closed at 1363. The MACD diff is negative and converging, suggesting we could see higher prices in the near term. The stochastics are negative and oversold, and this has increased downside impetus. The market needs to take out support at the 1350 level and then 1332, this could trigger losses back towards the robust support level of 1330, helping to confirm the descending triangle. On the upside, if prices find support above both 10 and 100 DMA levels at 1371 and 1374, respectively, the market could set the scene for higher prices to 23.6% fib level at 1385. The long lower wick points to an increased appetite on the downside, and we could see price edge lower in the near term.

NY 2nd Month Cocoa Futures

NY cocoa edged higher on Friday as intraday trading caused futures to test appetite at 2400, the market closed below at 2387. Stochastics are mixed, with %K/%D fluctuating, struggling to confirm a momentum. The MACD diff is negative and converging, suggesting waning selling pressure. To see another bullish candle, prices need to close above 10 DMA at 2410 and then target the 38.2% fib level at 2414. On the downside, the rejection of prices above 10 DMA could trigger losses back to 2355 before targeting 2350. Buying pressure remains weak, and indicators struggle to confirm an outlook, with the doji candle confirming market uncertainty. The reaffirmation of support above 10 DMA could strengthen the outlook of higher prices.

Ldn 2nd Month Cocoa Futures

Lnd cocoa futures sold off on Friday as protracted selling pressure prompted a break of trend support at 2240 to close on the back foot at 2227. The stochastics are falling, crossing into the oversold territory, and the MACD diff is negative and diverging, suggesting lower prices in the near term. The break of the key trend support suggests an appetite for lower prices. Primary and secondary support stands at 38.2% fib level at 2211 and 2200, respectively. If prices find support above 2301, this could prompt a recovery back above the 10 DMA. This level has provided strong resistance in recent weeks, and a close above this level would prompt prices to regain upside conviction. We anticipate prices to retreat 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.