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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 gained ground yesterday as protracted buying pressure prompted a test of the 15.60 level once again to close on the front foot at 15.50. The stochastics are rising, and the %K/%D seen diverging towards the overbought territory, highlighting growing buying pressures. The MACD diff is positive and diverging. On the upside, futures need to break above 40 DMA at 15.67 and then target the 16.00; however, prices struggle above that level in recent weeks. On the downside, the break below 15.29 could set the scene for lower prices towards the support of 100 DMA at 15.05. A possible cross of 10 DMA above 100 DMA today could confirm a strong buy signal. We believe that prices will strengthen in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures consolidated yesterday as buying pressure triggered a close on the front foot at 430.80. The stochastics are rising, as the MACD diff just crossed on the upside, signalling a buy trend in the near term. This suggests we could see higher prices in the near term towards 40 DMA at 440.24, but the market needs to take out immediate resistance at 436.70 beforehand, the level that futures struggled to take out in the recent sessions. On the downside, support around 427.60 is robust, and if this level does not hold firm, we could see prices retreat back through the 10 DMA at 425.63 before 420. Long upper wick points to the appetite for higher prices, however, futures need to take out 436.70 in order to confirm the outlook on the upside.

NY 2nd Month Coffee Futures

NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 40 DMA resistance at 131.95. The RSI is rising, while %K/%D are diverging on the upside, with %K edging in the overbought. The MACD diff is positive and diverging, outlining recent market growth. On the downside, a break back below the support level of 23.6% fib level at 129.51 could trigger losses back towards 10 DMA at 127.59, which would help confirm the outlook of lower prices in the longer term. On the upside, a complete break above 131 could trigger gains through resistance towards 135– March highs. The market rally has been strong in recent sessions, with three white soldiers formation confirming the strength of bull sentiment. The prices struggled above 40 DMA at 130.82 but yesterday’s breakthrough along with positive indicators confirm that we could see prices edge higher in the near term.  

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged higher yesterday and managed to close above 10 DMA at 1369. The indicators suggest we could see higher prices in the near term. The stochastics are rising, with %K/%D edged higher out of the oversold territory, and the MACD diff is negative and converging on the upside, suggesting waning selling pressure. The RSI is rising, and we expect futures to edge higher in the near term towards 1376 today, with trend resistance remaining the robust level on the upside. Superseding this level resistance stands at 23.6% fib level at 1385. On the downside, if futures fail into 1350, then we could see futures break back below 38.2% fib level at 1332. Prices struggled above the trend resistance, and if prices break above that level, we could see strong bullish momentum.

NY 2nd Month Cocoa Futures

NY cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 2441. The RSI is rising, while %K/%D diverging out of the oversold. Likewise, the MACD diff is about to converge on the upside, confirming growing buying pressures. On the upside, finding support above 2434 could trigger gains through 100 DMA at 2462 towards 40 DMA at 2495. On the downside, a break below the 10 DMA at 2400 level could trigger losses back towards 2355. That level has been supporting futures prices, and a break below it would signal a strong selling pressure. Longer upper wick signals that the buying pressure is growing and the bullish outlook is on the horizon.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures surged higher yesterday as intraday trading caused prices to test trend resistance at 2240 and then closed higher at 2245. The stochastics are rising, with %K/%D still in the oversold, and the MACD diff is negative and is converging, outlining the improved outlook on the upside. Long candle body yesterday suggests an appetite for higher prices above the immediate trend resistance before targeting 10 DMA at 2272 in the medium term. On the downside, a break below the 38.2% fib level at 2211 could trigger losses towards the support level at 2200. In order to confirm the outlook for a continued bullish trend, prices need to break completely above the trend resistance. Momentum favours the upside, and we expect this to remain the case in the near term.

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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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