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 edged lower yesterday after investors rejected prices above 10 DMA, prompting a close below 40 DMA at 17.31 at 17.20. The stochastics are falling, with RSIs in neutral territory; the %K/%D is diverging on the downside, suggesting a short-term negative trend. The MACD diff is negative and diverging, indicating improving sentiment on the downside. To confirm another bearish candle, prices need to break below the support level at 17.00 before the 16.85 level. Tertiary support stands at 16.46; a break below would confirm the three black crows formation. On the upside, to regain upside conviction, futures need to close back above 10 DMA at 17.59 and then 17.66 in the near term. Near term momentum is on the downside; the close below the 40 DMA confirms this trend.

Ldn 2nd Month Sugar Futures

Ldn sugar sold off yesterday, as protracted selling pressure triggered a test of support at 100 DMA of 448.86 and closed on the back foot at 449.40. The stochastics are falling, with %K/%D diverging on the downside, highlighting the recent selling pressure. The MACD diff is negative and diverging, suggesting increasing downside pressures; this could set the scene for lower prices towards the 100 DMA support level. A break below this level would confirm the trend for falling prices, down to the 23.6% fib level at 448.02. On the upside, a level at 40 DMA at 459.97 is at near-term resistance, and support above that level would strengthen the bullish momentum. This could also trigger gains towards the 10 DMA at 462.58. Long candle body along with negative indicators point to an increased appetite on the downside, and we could see prices edge lower in the near term.

NY 2nd Month Coffee Futures

NY coffee futures softened yesterday after finding support above 151. The market closed at 153.25. The stochastics are losing ground in the oversold territory, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through support at 23.6% fib level at 151.58. A break below this level would bring into play the 40 DMA at 150.91 level, which could set the scene for 146.95. On the upside, futures need to gain back above 156.84 – the trend resistance - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 158.25; this could strengthen the trend in the long run on the upside. Close near the lows points to the continuation of the downtrend, and we could see prices edge lower in the near term.

Ldn 2nd Month Coffee Futures

London coffee futures increased marginally yesterday as trading saw prices close below 10 DMA at 1600. The stochastics are seen diverging on the downside, with the %K/%D edging close to the oversold, and the MACD diff just converged on the downside. A break of 1600 could trigger losses through 1585, with the secondary level at 1550. On the upside, a break above 10 DMA at 1618 could set the scene for bullish momentum towards the month high of 1693. The spinning top formation has been formed, which points to market indecisiveness, however, a fall below the current support would confirm further bearish momentum.

NY 2nd Month Cocoa Futures

NY cocoa prices weakened yesterday as intraday trading caused prices to find support at the 2416 level; the market closed at 2428. The MACD diff is negative and converging on the upside, suggesting we could see higher prices in the near term. The stochastics are positive and diverging out of the oversold, and this has increased upside impetus. The market needs to take out support at the 2400 level and then 2355; this could trigger losses back towards the robust support level of 2350. On the upside, if prices find support above both 10 DMA level at 2430, the market could set the scene for higher prices to 40 DMA at 2455. Firm resistance at 100 DMA suggests a lack of appetite above the level, and we expect prices to retreat in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa softened yesterday, as protracted selling pressure triggered a close on the back foot at 2297. The stochastics are rising, with %K/%D is diverging on the upside out of the oversold. The MACD diff is negative and converging. Narrow bullish candle body with long lower wick highlights growing momentum on the upside; this could set the scene for higher prices to break above the 40 DMA at 2309, but prices struggled above that level. This would confirm the trend for rising prices, up to the 100 DMA at 2328. On the downside, a breach of support at 10 DMA at 2292 would strengthen the bearish momentum. This could also trigger losses towards 2277. Indicators point to higher prices, but with prices failing above the trend resistance, futures are 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 September 2021

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