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 sold off yesterday as lack of appetite for higher prices helped to break the 17.50 support, the market closed at 17.48. Stochastics are converging on the downside, suggesting further selling momentum in the near term. MACD diff is negative and is about to converge on the upside, supporting the outlook for strengthening prices. The last two days formed a bearish engulfing pattern, a sign of an impending market downturn. The sell-off yesterday suggesting further selling pressure below the current support level, and the above-mentioned indicators support lower prices. A break below the 10 DMA at 17.26 could set the scene for a test of support at 17.00. The 40 DMA is at 16.85, and we expect robust support at this level. On the upside, trend resistance around 17.92 and then at 18.00 would help reaffirm the bullish trend in the near term. We believe that the market lacks conviction, and prices should continue to fall.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened yesterday after finding support above 460. The market closed at 462.20. The stochastics are rising and converging, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 10 DMA at 457.87. A break below this level would bring into play the 40 DMA level at 455.03, which could set the scene for support at 452.80. On the upside, futures need to gain back above 470 – the previous day’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 478.80; this could strengthen the trend in the long run on the upside. The long lower wick points to an increased appetite on the downside, and we could see the price edge lower in the near term.

NY 2nd Month Coffee Futures

NY coffee futures edged lower yesterday as protracted selling pressure triggered a close at 159.65. The stochastics are falling, with the %K/%D in the overbought territory, and the MACD diff is positive and converging. A break of 159.30 could trigger losses through 100 DMA at 157.36, with the secondary level at 155.40. On the upside, a break above last sessions’ highs at 168.65 could set the scene for bullish momentum. The long candle body and indicators point to more downside movement in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged lower yesterday as moderate selling pressure triggered a close at 1616. The stochastics are rising, yet converging, with the %K in the overbought territory; however, the MACD diff is positive and converging. A break of 1600 could trigger losses through 1557, with the secondary level at 10 DMA at 1548.50. On the upside, a break above previous sessions’ highs at 1642 could set the scene for a test of 1650, pointing to a change of trend for more bullish momentum. Yesterday’s bearish spinning top formation points to market indecisiveness about the outlook for higher prices, and we need the futures to break support at 1600 to confirm the outlook.

NY 2nd Month Cocoa Futures

NY cocoa weakened yesterday, as protracted selling pressure triggered a close on the back foot at 2455. The stochastics are falling, edging close to oversold, and the RSI has also edged lower. The MACD diff is negative, however, lacks the conviction to suggest an outlook. Bigger bodied bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 2450 support level. This would confirm the trend for falling prices, down to 2434. On the upside, resistance at 200 DMA at 2494 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 2500. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures softened marginally yesterday as selling pressure saw futures broke trend support at 2300. This level held firm, and the future closed at 2293. The stochastics are falling, with %K/%D in the oversold. Likewise, the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for higher prices, futures need to break back above the resistance at 2300, which could set the scene for futures to take out the 10 DMA at 2315. On the downside, the market needs to take out support at 2273 and then support at 2250. We expect to see further softening 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 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.