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  

Prices buckled yesterday as a lack of appetite for prices above 18.53 prompted futures to close at 18.20. The stochastics are in overbought territory but are converging, as the MACD diff is starting to plateau but the ADX continues to rise. To confirm the rejection of 18.53, prices need to break below 18.00 and then 17.87. The 40DMA stands at 17.41, before the 100 DMA at 16.59 which could be a target on the downside in the long run. We do not expect this level to be tested. On the upside, a band of support between 17.87-18.00 has been robust in recent weeks and this could trigger gains through 18.53 before targeting 19.00. We expect prices to soften today but if prices test support at 17.41 holds, long term momentum will remain on the upside. 

Ldn 2nd Month Sugar

Ldn futures sold off yesterday as a rejection of resistance at 480 prompted a close on the back foot at 469.20. The stochastics are converging in overbought territory but the MACD diff is still positive and diverging, The RSI is falling which helps to confirm yesterday's bearish engulfing candle, but to confirm this pattern and the double top at 480 futures need to break towards 460. On the upside, an appetite for prices below 469 could prompt futures to break above 482.60. This would help confirm an ascending triangle and pave the way for higher prices towards 500. We expect prices to edge lower in the near term and break towards 460.

NY 2nd Month Coffee

NY coffee sold off yesterday as protracted selling pressure prompted futures to break through key support at 150 and close at 148.10. The stochastics have given a sell signal and the MACD diff is negative, suggesting we could see lower prices in the near term through 148.10 towards the 40 DMA at 142.18. Selling pressure has been robust and the close has been on the lows indicating bearish sentiment. On the upside, if prices have been well supported at between 148-150, if this remains the case, if futures can gain a footing back above 151.58 before targeting 155.4. We anticipate selling pressure to continue in the near term. 

Ldn 2nd Month Coffee

Ldn coffee sold yesterday as intraday trading caused futures to test resistance at 1720 before selling off and closing at 1679. The stochastics are plateauing, and the MACD diff is converging as the RSI falls as well. Upside tail and the repeated rejection of prices above 1700 could set the scene for lower prices through 1679 towards 1643.54. On the upside, an appetite for prices below 1670 could trigger gains back towards 1700. The key level on the upside is 1737 but market sentiment is soft at the momentum and we do not expect futures to rally to this level. We expect futures to break towards 1643. 

NY 2nd Month Cocoa 

NY cocoa prices buckled yesterday as protracted selling pressure prompted prices to break support at 2317 and close at 2298. The stochastics are falling back towards oversold but the RSI and MACD diff are falling. The close below 2300 could trigger losses back to 2250, to confirm the descending triangle prices the market needs to test 2200. On the upside, an appetite for prices below 2300 could trigger gains back to 2362 before targeting 2434. We expect futures re-test appetite above 2300 today but a rejection of this level would trigger losses back to 2250. 

Ldn 2nd Month Cocoa 

Ldn cocoa prices rejected near term trend resistance yesterday, prompting a close at 2208.77. The indicators lack conviction but the stochastics are oversold and the MACD diff is negative. The rejection of trend resistance and bearish candle suggests we could see prices break below 2200, helping to confirm the descending triangle, secondary support stands at 2147 with secondary support at 2100. On the upside, if futures break above trend resistance this could trigger gains to 2300 however, we expect the market to struggle in the near term and break towards 2147.

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.

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.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

FX Monthly Report June 2021

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