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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 buckled yesterday as lack of appetite for higher prices helped to confirm the rejection of support at 17.00; the market closed at 16.71. Stochastics are negative, with %K entering the oversold territory, and the RSI has edged lower, suggesting growing selling pressures. The MACD diff is negative and diverging, suggesting the outlook for negative prices. The close near the lows suggests the strong selling pressure in the near term, and the indicators point to a growing negative trend. A break below the 16.46 level could set the scene for a test of trend support at 16.42. Conversely, if current support around 16.70 holds firm, this would help confirm the change in trend on the upside. If the futures break through the 40 DMA level at 17.32, the prices could test the resistance at 10 DMA at 17.37 in the near term. The downside risks prevail, as also seen by converging resistance DMAs however the market needs to confirm a break below the near-term support for stronger bearish momentum.

Ldn 2nd Month Sugar Futures

Ldn futures sold off yesterday as selling pressure prompted a break below the support at 440. The market closed at 434.50. The stochastics are falling while diverging on the downside, touching the oversold area. The MACD diff is negative and diverging, confirming the appetite for lower prices. Yesterday’s full candle and the break of key support level suggest a strong appetite for lower prices, and we could see futures continue to edge lower in the near term down to 430. Secondary and tertiary supports stand at 427.60 and the 38.2% fib level at 426.63. Conversely, support around 440 could set the scene for higher prices back to the 23.6% fib level at 448.02. A break above that level would help to regain upside conviction. We believe that there is an appetite for lower prices in the near term.

NY 2nd Month Coffee Futures

NY coffee softened yesterday, as protracted selling pressure triggered a breakthrough of 40 DMA and closed on the back foot at 151.60. The stochastics are falling, with %K entering the oversold territory, 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 150 support level. A break below this would confirm the trend for falling prices, down to 146.95. On the upside, resistance at 155.40 has proven to be strong before, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 158.25. Long candle body along with longer lower wick point to an increased appetite on the downside, however the futures need to break completely below 40 DMA to confirm the outlook.

Ldn 2nd Month Coffee Futures

Ldn coffee futures failed above 10 DMA once again yesterday as prices closed at 1598. The stochastics are falling, with %K/%D edging close to 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 1559; a subsequent breach of this level could trigger losses towards 1550. On the upside, a break of 10 DMA at 1617 and 1624 may prompt futures to retest last weeks’ highs at 1646. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Long upper and short lower wicks point to an appetite for higher prices; however, the futures needs to break above 10 DMA to confirm the outlook.

NY 2nd Month Cocoa Futures

NY cocoa futures edged lower yesterday as protracted selling pressure triggered a close at 2381. The stochastics are falling, with the %K/%D edging back to the oversold territory, and the MACD diff is negative and diverging. A break of 2355 could trigger losses through 2350, with the secondary level at 2424. On the upside, a break above 10 DMA at 2418 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 Cocoa Futures

Ldn cocoa futures opened below a key support level of 2277 but found the strength during the day to close higher at 2262. The RSI is falling, and %K/%D just converged on the downside once again close to the oversold territory. The MACD diff is negative and diverging, suggesting growing selling pressures. The indicators point to lower prices in the near term, and to confirm the rejection of the support, prices need to take out 2250. A break below this level towards 38.2% fib level at 2211 would confirm the strong bearish momentum. Conversely, appetite for prices above the 2277 level could trigger a test of 10 DMA at 2284; secondary resistance stands at 2300. A spinning top candle after two bearish candles signals uncertainty about the outlook for trend reversal, and a break below the key resistance confirms there is more appetite for downside potential.

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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