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 yesterday, causing the market to close at 17.58. The stochastics are rising, with %K/%D converging on the upside, and the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close back above 17.66 and then target 17.79, the recent highs. The 10 DMA is closing in and supporting prices on the downside. However, a break below that level could set the scene for 17.00 and then 16.85. The narrow candle body with long upper and lower wicks points to market uncertainty about the direction of the move, and prices need to break out of current resistance/support to confirm the near-term outlook.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged lower yesterday as prices closed at 466.50. The indicators continue to favour the upside, however, converging, with %K/%D crossing on the upside and MACD diff positive and diverging, suggesting growing buying pressures. A break below the 10 DMA at 459.93 would bring into play the recent sessions' support level at 449.60. Prices have been well supported above the trendline, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 470 and then target the recent highs of 476.20 in the near term. The hanging man candle formation suggests that while there was a sell-off during the day, buyers had an appetite for higher prices. The break above the resistance level, however, would confirm the ascending triangle formation.

NY 2nd Month Coffee Futures

NY coffee futures rallied yesterday, reaching 2017 highs, and managed to close above the previous resistance of 150 at 154.30. The stochastics are rising into the overbought once again, with %K/%D converging on the upside, and the MACD diff is positive and diverging, prompting further buying pressure. We expect futures to remain supported in the near term, with near term resistance at 155.40 and secondary level at 158.25 if buying pressure persists. On the downside, if futures fail into 146.95, then we could see a break back below the 145 before the 10 DMA support of 144.28. We expect futures to remain elevated in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures gained ground yesterday as buying pressure triggered a close on the front foot at 1547. The stochastics are rising with the %K/%D remaining in the oversold area, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards 1560, but the market needs to take out immediate resistance of 1550. On the downside, the candle found support in line with the previous day’s closing price, and if prices break through this level, we could see them retreat back through 1479 before 10 DMA at 1466. The three white soldier formation is a bullish signal, but the long lower wick yesterday points to uncertainty above the current resistance of 1550.

NY 2nd Month Cocoa Futures

NY cocoa consolidated yesterday after prices failed above 10 DMA, this triggered prices to close at 2413. The stochastics are rising near the oversold, and the MACD diff is negative and converging, improving the outlook on the upside. Yesterday's candle suggests a lack of appetite above 2414, and we saw prices fail into 2400 later on the day. Futures need to hold above 10 DMA at 2427, and this could trigger gains towards 40 DMA at 2452. Prices need to hold above this level to regain upside conviction. On the downside, reaffirmation of resistance at the 38.2% fib level at 2414 would confirm the trend on the downside, but prices need to take out the recent low of 2317. Both upside tails suggest market uncertainty, but the indicators point to further bullish momentum in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged higher yesterday after futures tested 2250 once again to close at 2238. The stochastics are near oversold but are seen converging on the upside, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the bullish indicators and rejection of prices below 2211, futures need to take out resistance at 10 DMA at 2258 and then target a 50% fib level at 2301. On the downside, futures need to close below 2200 and then target the recent lows of 2187 in order to confirm the outlook of lower prices. Long upper wick points to an appetite for higher prices; however, weakness prevailed during the day. Prices need to take out current resistance to confirm the outlook for higher prices. We expect futures to strengthen 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.

FX Monthly Report June 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. Precious metals 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.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

Quarterly Metals Report – Q2 2021

Metal prices have rallied so far in 2021, in line with improving economic data and risk appetite, largely due to improving vaccination rates across the globe. Europe was slow to roll out vaccines, and as a result, has seen lower economic growth and weaker metals demand. However, the disconnect between supply and demand is set to continue in the near term as supply struggles to keep up. The global chip shortage is having an impact on the auto market, and there is no quick fix to this problem. Physical traders in China are reluctant to pay the high prices, but the fund community remain heavily involved. We expect metal prices to remain supported in Q2, but we are seeing early signs that supply is responding, but this will be more of a factor in H2 2021.