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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 lost ground yesterday as moderate selling pressure triggered a close on the back foot; however, above the previous day opening price, at 17.54. The stochastics are rising, as the %K is about to cross into the oversold, signalling a buy trend in the near term. The MACD diff just converged on the upside, a strong buy signal. This suggests we could see higher prices in the near term towards 17.87, but the market needs to take out immediate resistance at 17.66 beforehand, confirming the ascending triangle. On the downside, trend support around 40 DMA at 17.34 is robust, and if this level does not hold firm, we could see prices retreat back through the 10 DMA at 17.11 before 17.00. Long lower wick on Tuesday points to the appetite for higher prices, however, futures need to take out 17.66 in order to confirm the outlook on the upside.

Ldn 2nd Month Sugar Futures

Ldn sugar strengthened yesterday, as protracted buying pressure triggered a close on the front foot at 456.50. The stochastics are rising, with %K/%D is diverging on the upside towards the oversold. The MACD diff converged on the upside. 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 40 DMA resistance at 456.75. This would confirm the trend for rising prices, up to 460. On the downside, a breach of support at 452.80 would strengthen the bearish momentum. This could also trigger losses towards the 449.60. Indicators point to higher prices, however futures need to break above 40 DMA to confirm the outlook.  

NY 2nd Month Coffee Futures

NY coffee futures lost ground yesterday after prices tested the 158.25 support level, prompting a close at 160.20. The stochastics are rising, with %K/%D seen converging near the oversold, and the MACD diff is negative and converging as futures failed to confirm the outlook of lower prices. Futures need to close above 165.60 resistance and then target 168.65 in the medium run. On the downside, the long candle suggests increased appetite lower prices in the near term. Prices need to close below 159.30 before targeting 158.25, but prices found support there in the last couple of sessions. The indicators are pointing to growing pressures, and we expect prices to continue to rise in the near term.

Ldn 2nd Month Coffee Futures

Ldn futures sold off yesterday as selling pressure prompted a break below the support at 1700. The market closed at 1675. The stochastics are converging on the downside yet still remaining in the overbought area. The MACD diff is positive and converging, confirming the appetite for lower prices. Yesterday’s full candle and the bearish engulfing pattern formation suggest a strong appetite for lower prices, and we could see futures continue to edge lower in the near term down to 1650. Secondary and tertiary supports stand at 1642 and 10 DMA at 1639, with the latter holding firm in recent sessions. Conversely, support around 1700 could set the scene for higher prices to the 1750 level. A break above that level would help to gain upside conviction. We believe that there is an appetite for lower prices in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures held their nerve yesterday as intraday trading caused the market to close at 2390. The stochastics are rising, with %K/%D breaking out of the oversold territory, and the MACD diff is negative and about to cross on the upside, suggesting higher prices in the near term. The RSI is also rising; to confirm the outlook of higher prices, futures need to close back above 2400 and then target 2434. A break above 10 DMA is further highlighting impetus on the upside. On the downside, a break below 2355 could set the scene for 2350. Two narrow-bodied candles with long wicks in the last couple of sessions point to market uncertainty, however, with the futures breaking above the strong resistance of 10 DMA, we expect prices to edge higher in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged higher yesterday, but prices failed above 2250 once again and then closed below at 2247. The indicators are favouring the upside; the stochastics are rising, with %K/%D diverging on the upside and edging out of the oversold area, and the MACD diff is negative and converging, confirming further buying pressures. A break below the 38.2% fib level at 2211 would bring into play the support at 2210. On the upside, prices need to find support above 10 DMA at 2251 and the previous week’s high at 2277 before targeting 2300 in the near term. Indicators point to further bullish momentum, however, prices have struggled to break out of the DMA resistance, and a break out of these levels would set the scene for a trend change.

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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