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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 17.40 level once again to close lower at 17.18. The stochastics are rising, about to converge on the upside near the oversold, suggesting a growing bullish momentum in the near term. The MACD is negative and seen converging. To confirm a bullish candle, futures need to break above the 17.50 level and then target 17.66. On the downside, the break below 17.00 could set the scene for lower prices towards the support of 16.46. However, the market struggled below that level in recent weeks, and long upper wick suggests there is an appetite for higher prices. Near term resistance stands at 17.50, and a breach of this level could confirm a further bullish outlook.

Ldn 2nd Month Sugar Futures

Ldn sugar gained ground yesterday as trading caused futures to close above 10 DMA at 456.80. RSI is rising marginally, and %K/%D is converging on the upside in the oversold, confirming the change of trend in the near term. Likewise, the MACD is converging on the upside, confirming growing buying pressure. To maintain positive momentum, prices need to close above 460 and then target 463.50. On the downside, the rejection of prices above 460 could trigger losses back to 452.80 before 449.60. Buying pressure has been weak, however, the indicators point to an acceleration of the momentum. The narrow candle body and long wicks confirm market uncertainty. The support above 10 DMA would help to confirm the outlook for higher prices, and we expect prices to grow in the near term.

NY 2nd Month Coffee Futures

NY coffee futures edged higher yesterday as intraday trading saw prices close at 152.45. The RSI is rising, and %K/%D is positive and diverging, edging close to the overbought territory. The MACD diff, however, lacks the conviction to point out an outlook. The indicators point to rising prices in the near term, and to confirm the rejection of the resistance, prices need to take out 155.40. A break above this level towards 158.25 would confirm the bullish momentum. Conversely, an appetite for prices below the 10 DMA at 149.79 could trigger a test of support at 146.95. A doji candle after the three black crows formation signals uncertainty about the outlook for lower prices, and the futures need to edge higher today to confirm the continuation of a positive trend.

Ldn 2nd Month Coffee Futures

London coffee futures jumped higher yesterday as trading saw prices close above 10 DMA at 1512. The stochastics are seen converging on the upside, with the %K/%D now diverging higher in the neutral territory, and the MACD diff is negative and converging. A break of 1500 could trigger losses through 10 DMA at 1490.30, with the secondary level at 1479. On the upside, a break above 1536 could set the scene for bullish momentum towards the month high of 1550. The spinning top formation has been formed, which points to market indecisiveness, however, a jump above the resistance of 10 DMA points to an appetite for prices above that level.

NY 2nd Month Cocoa Futures

NY cocoa futures softened yesterday after breaking support at 2434. The market closed at 2427. The stochastics are falling towards the oversold territory, and the MACD diff just converged on the downside, suggesting we could see lower prices in the near term through the support of 2414. A break below this level would bring into play the 2400 level, which could set the scene for support at 2355 in the longer term. On the upside, futures need to gain back above the 40 DMA at 2448 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the 100 DMA level at 2494; this could strengthen the trend in the long run on the upside. The long lower and upper wicks point to an increased appetite on either side, however, prices remained range-bound; the indicators point to a more bearish outlook in the near term.  

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures failed above 2350 yesterday as prices closed below 100 DMA at 2312. The stochastics are falling, with %K entering the oversold. The MACD is negative and diverging, pointing to lower prices in the near term. The rejection of higher prices may prompt a break back towards support at 40 DMA at 2300; a subsequent breach of this level could trigger losses towards the trend support. On the upside, a break back above 40 DMA at 2323 and 2350 may prompt futures to retest previous sessions’ highs at 2391. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Long upper and lower wicks point to an appetite out of the current trading range; however, the future needs to break below 40 DMA to confirm the outlook.

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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