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 

Prices edged lower on Friday as selling pressure prompted futures to close at 20.25. The stochastics are starting to top out and are falling, the MACD diff is converging on the upside and we could see prices edge lower in the near term. To confirm the shooting star candle and increased selling pressure, the market needs to take out 20. Superseding this level, prices need to test support at 19.44. On the upside, prices have been supported below the upper trend channel, this may prompt a test of the recent high at 20.95, before targeting a break of 21. The indicators are edging lower and this could indicate a correction on in the immediate term. 

Ldn 2nd Month Sugar Futures 

Futures sold off sharply on Friday as protracted selling pressure prompted prices to break through support at 500 to close below the 10 DMA at 496.50. The MACD diff is converging and is set to become negative in the near term, the stochastics have given a sell signal but are still in overbought territory. The indicators and close below 500 could set the scene for lower prices in the near term towards 482.60. The reaffirmation of support at 482.60 would keep momentum on the upside in the long run and could lead to higher prices. Appetite for prices below 500 could trigger prices to push back towards 520. We expect prices to edge lower in the near term.

NY 2nd Month Coffee Futures 

Futures consolidated on Friday as prices were supported below 180 before closing above the 38.2% fib level. The MACD diff is negative and starting to diverge on the downside, the stochastics lack conviction and are neutral but prices continue to consolidate. Spikes below 180 could trigger gains towards 189.16, this could trigger gains back to 195 before targeting 200. The band of support between174 and 182 is holding firm but futures have failed to take out resistance at 189.16. Increased selling pressure could trigger losses back towards 174.50, futures need to take out this level in order to confirm the prospect of lower prices. Secondary support stands at the trend support. We could see further consolidation in the near term. 

 

Ldn 2nd Month Coffee Futures 

Futures remain on-trend, as prices were well supported at the 10 DMA and closed at 1882. The stochastics are rising, and are in overbought territory but the RSI and MACD diff lack conviction. To confirm the stochastics, and reaffirmation of trend support, futures need to break 1900 before targeting 2000 in the near term. The long term trend favours the upside and we expect prices to remain on-trend. However, if prices fail to break 1900, futures could soften back towards the 23.6% fib level before targeting the 40 DMA and trend support at 1798.7. 

NY 2nd Month Cocoa Futures 

Sold off sharply on Friday as protracted selling pressure caused a break of support at 2600, and the market closed at 2567. The stochastics are falling but remain overbought, and the MACD diff is converging with the RSI and DMI also weakening, this suggests we could see further losses in the near term towards 2514. A subsequent breach of this level could trigger losses to 2440, which would help confirm the double top. On the upside, an appetite for prices below 2600 may prompt a resumption of buying pressure. The market needs to gain a footing above 2600 before targeting 2700. We expect prices to weaken in the near term as selling momentum builds. 

Ldn 2nd Month Cocoa Futures 

Cocoa prices softened on Friday as intraday trading prompted futures to close at 2439.41. The stochastics have given a sell signal and are falling out of overbought, the RSI and MACD diff are converging indicating lower prices.  The rejection of price at 2500, and now 2450 could set the scene for lower prices towards 2400. On the upside, futures need to take out 2500 before targeting the recent high at 2530, this would prompt rejection of the head and shoulders pattern. 

 

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 Base Metals

Daily market commentary on LME aluminium, copper, lead, nickel, tin and zinc.

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Weekly Report FX Options

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

FX Monthly Report December 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we focus on China, highlighting the fundamentals for the macroeconomy, as well as any changes to the PBOC in the coming months. The recent cut in the risk reserve requirement suggests monetary loosening. We also outline the movement between the onshore and offshore currency for those looking to arbitrage or hedge their exposure. This analysis gives an indication of the average width of the spread what key levels to look out for.

Quarterly Metals Report – Q4 2021

The global macro picture is starting to present some downside risks in the near term as China's economy is set to slow further and supply-chain bottlenecks continue to cap growth. New orders and new export orders in China are contractionary, and we expect demand in Q4. Order backlogs and lead times for products will continue in Q4, limiting growth, and real consumption is weaker than it looks. Higher costs from shipping, raw materials and energy will take their toll on the consumer, and we expect end-user demand to suffer. The final piece of the jigsaw is the reduction in stimulus from central banks and how that will impact financial markets, bond yields, and the dollar has rallied while stocks corrected, but what will this trend continue?