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 gained ground yesterday as buying pressure triggered a close on the front foot at 17.71. The stochastics are rising with the %K/%D diverging towards the overbought area, as the MACD diff is about to converge on the upside – a clear buy signal. This suggests we could see higher prices in the near term towards above the trend resistance of 17.87 to target 18.00. A test of 18.23 resistance level would confirm a double top candle formation. On the downside, the candle found support at 17.50, and if the prices break through this level, we could see prices retreat back through the 10 DMA at 17.23 before 17.00. The three white soldier formation is a bullish signal, but futures need to take out the trend resistance at 17.87 in order to confirm the outlook on the upside.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher relative to Friday’s candle; however, weakness prevailed during the day, and the futures closed lower at 466.20. The stochastics are rising out of the oversold, 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 460, futures need to take out resistance at 470 and then target 478.80. On the downside, futures need to close below 460 and then target 10 DMA at 456.40 in order to confirm the outlook of lower prices towards 452.80. Long upper wick points to an appetite for higher prices; however, weakness prevailed during the day. Futures need to take out current resistance to confirm the outlook for higher prices.

NY 2nd Month Coffee Futures

Prices weakened yesterday as selling pressure triggered a close below the previous day’s closing price at 163.05. The MACD diff is positive and diverging, and the stochastics are converging. The RSI is overbought, confirming the change in trend in the near term. The market has been well bid, and in order to confirm the recent trend and ascending triangle, prices need to break 164.30 and then 170. Conversely, to confirm the previous shooting star candles and rejection of resistance at 168.65, the market needs to break below 160 before targeting 159.30. This would bring into play the trend support and 10 DMA at 155.65.

Ldn 2nd Month Coffee Futures

London coffee futures edged higher yesterday as moderate buying pressure saw prices close at 1615, the 2018 highs. The stochastics remain elevated in the overbought but are seen converging on the downside, with the %K soon to leave the overbought territory, however, the MACD diff is positive and diverging. A break of 1557 could trigger losses through 10 DMA at 1525, with the secondary level at 1500. On the upside, a break above last sessions’ highs at 1642 could set the scene for bullish momentum. The market, however, is showing signs of indecisiveness, outlined by long upper and lower wicks, and we could see more downside movement in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground yesterday as intraday trading triggered a close on the front foot at 2467. The stochastics are falling as the MACD diff remains negative, signalling a continued muted outlook. This suggests we could see prices remain within the current range in the near term, but in order to suggest a change of sentiment, the market needs to take out immediate resistance at 100 DMA at 2494, before 2500. On the downside, support around 40 DMA at 2455 is robust, and if this level does not hold firm, we could see prices retreat back through 2450 before 2434. Long upper wick points to the appetite for higher prices; however, narrow candle body lacks conviction to suggest an outlook out of the current range.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures gained ground yesterday after prices tested resistance at 100 DMA, this triggered a close at 2322. The stochastics are falling, and now in the oversold, and the MACD diff is negative but lacks conviction. A break below the current support of 50% fib level at 2301 could see futures test trend support at 2297 once again, setting the scene for lower prices at 2275. On the upside, in order to confirm higher prices, futures need to close above the current resistance and 100 and 10 DMAs at 2327. These levels have been robust, and we expected prices to remain capped on the upside.

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 FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Daily Report Base Metals

Daily market commentary on LME aluminium, copper, lead, nickel, tin and zinc.

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.