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 rallied yesterday as protracted buying pressure triggered a close on the front foot at 19.18. The RSI is rising, while %K/%D have just converged on the upside, near the oversold. The MACD diff is positive and diverging, outlining recent market growth. On the downside, a break back below the support level of 18.53 could trigger losses back towards 18.00. A break below this level would confirm the outlook of lower prices in the longer term. On the upside, a break above 19.20 could trigger gains through trend resistance towards 19.35. The long candle body with a close near the highs confirms the strength of bull sentiment. We could see prices trend even higher today, but support at 10 DMA at 18.72 needs to hold firm for this to be the case.

Ldn 2nd Month Sugar Futures

Ldn sugar futures consolidated yesterday as buying pressure prompted resistance at 478.80, triggering a close at 477.50. The stochastics are rising, with the %K/%D converging on the upside, outlining the improvement in positive sentiment. The MACD is positive and diverging, supporting the outlook for growing buying pressures. In order to confirm the full candle on the upside, and the positive indicators, prices need to take out the 478.80 today, which could pave the way for a test of 482.60 resistance level. On the downside, a break below 10 DMA at 469.64 could trigger further losses towards the 460. A breach of this level would confirm the triple top formation. A close back above 478.80 today would regain upside conviction and pave the way for further gains.

NY 2nd Month Coffee Futures

NY coffee strengthened yesterday, as moderate buying pressure triggered a close on the front foot at 179.90. The stochastics are falling, with %K diverging in the oversold. The MACD diff is negative and diverging. 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 resistance at 180, but prices struggled above that level for the last couple of sessions. This would confirm the trend for rising prices, up to the 23.6% fib level of 185. On the downside, a breach of support at 174.50 would strengthen the bearish momentum. This could also trigger losses towards the 38.2% fib level at 168.05. Indicators point to higher prices, but with prices failing above the resistance, futures are capped on the upside.

Ldn 2nd Month Coffee Futures

Ldn coffee futures softened yesterday after finding support above 40 DMA at 1732.50. The market closed at 1782. The stochastics continue to soften, with %K in the oversold territory, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through the support of 40 DMA. A break below this level would bring into play the 38.2% fib level at 1705, which could set the scene for trend support at 1668 in the longer term. On the upside, futures need to gain back above 23.6% fib level at 1815 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 10 DMA at 1856; this could strengthen the trend in the long run on the upside. A longer lower wick, where most of the trading took place in the upper ranges, points to further selling pressures, however, prices need to break below the current support level to confirm the outlook.

NY 2nd Month Cocoa Futures

NY cocoa held its nerve yesterday as intraday trading caused futures to close at 2457. RSI is rising marginally, and %K/%D is converging on the downside in the overbought. The MACD diff is positive and converging on the downside. To maintain positive momentum, prices need to close above 200 DMA at 2466 and then target trend resistance at 2482. On the downside, the rejection of prices above 2480 could trigger losses back to 10 DMA at 2440 and then 2434, a firm support level. Buying pressure has been weak, and the indicators point to a continuation of that momentum. The narrow candle body and short wicks confirm market uncertainty. A break of resistance at 200 DMA could confirm the outlook for higher prices in the near term.

Ldn 2nd Month Cocoa Futures

Lnd cocoa held the nerve yesterday as intraday trading caused futures to close at 2350. The %K/%D remain overbought but lack the conviction to point out an outlook. The MACD diff is positive and converging. To confirm a full bullish candle, prices need to close above 2376 – the previous day high - and then target 2388 before 2400. On the downside, the rejection of prices above 10 DMA could trigger losses back to the 100 and 40 DMA levels at 2293 and 2270, respectively. Buying pressure yesterday was weak, and indicators point to growing selling pressures. The doji candle confirms market uncertainty. The break of support at 10 DMA could confirm the outlook for lower prices 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 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.