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 futures gained ground yesterday as moderate buying pressure closed above 10 DMA resistance level at 17.22. The stochastics are rising, and the %K/%D have converged on the upside near the oversold, suggesting a buy signal in the near term. The MACD diff is also seen converging on the upside, highlighting the upcoming bullish trend. To confirm the bullish candle, futures need to find support above the 10 DMA level and then target 17.50. On the downside, the break below 17.00 could set the scene for lower prices towards the support of 16.85. However, the market was well supported above that level in recent weeks, the bullish candle with a long body suggests a potential change in sentiment. Firm support at that level suggests a lack of appetite below, and we expect prices to firm in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures consolidated yesterday after prices found support above 452.80, prompting a close at 458.80. The stochastics are diverging out of the oversold territory; the MACD diff is negative and converging. The ADX and DMI are converging on the upside, confirming the outlook for higher prices. The reaffirmation of support at 10 DMA at 454 could trigger gains towards 460 before targeting 470. On the downside, a break below the 40 DMA at 450 could see prices test the 100 DMA at 445 level. We expect prices to remain within the recent range today and test appetite around 460 today.

NY 2nd Month Coffee Futures

NY coffee futures softened yesterday after finding support above the previous day’s closing price. The market closed at 157.30. 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 159.30. A break above this level would bring into play the 160 level, which could set the scene for 165. On the downside, futures need to fall back below the trend line of 155.40 in order to confirm downside momentum. The rejection of support here could trigger losses towards the 10 level at 151.99; this could strengthen the trend in the medium run on the downside. After reaching multi-year highs, futures are seen struggling above 159.30, and we could see the bullish trend end if prices continue the decline 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 1538. The stochastics are rising with the %K/%D edging towards the overbought area, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards 1557, but the market needs to take out immediate resistance of 1550, which would confirm the double top formation. On the downside, the candle found support at the 10 DMA level at 1495, and if the prices break through this level, we could see futures retreat back through 1479 before 1469. The three white soldier formation is a bullish signal, but futures need to take out 1550 in order to confirm the outlook on the upside.

NY 2nd Month Cocoa Futures

NY cocoa strengthened yesterday, as protracted buying pressure triggered a close on the front foot at 2468. The stochastics continue to fall, with %K/%D is seen converging near the oversold. The MACD diff is negative and converging. A narrow bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the trend resistance at 2500. This would confirm the trend for rising prices, up to 2520. On the downside, a breach of support at 40 DMA at 2494 would strengthen the bearish momentum. This could also trigger losses towards 2434. Indicators point to higher prices, and with futures breaking above the 40 DMA resistance level, we expect to see prices edge higher today.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures weakened yesterday as futures failed into the resistance at 100 DMA at 2325 and closed at 2312. The stochastics continue to decline and have entered the oversold. The MACD diff turned negative, a clear sell signal. A break below trend support would confirm a bearish engulfing candle pattern. This may pave the way for lower prices to 2270 with the tertiary level at 2250. Conversely, the reaffirmation of support above 100 DMA would suggest higher prices and a close above 2350, setting the scene for higher prices towards 10 DMA at 2348. Yesterday’s candle body being larger Wednesdays’ suggests a growing appetite for lower prices and could trigger a break of support today. The indicators are pointing to a further decline in prices 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.