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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 gained ground yesterday as buying pressure prompted a test of 20.34. The market closed at 20.29. The stochastics are rising, and the MACD diff is negative and converging, suggesting further bullish momentum in the near term. Prices found support above the 20.20 level, and if this level proves robust, we could see prices edge higher in the near term towards a trend resistance of 20.74. A break below the support could break the trend and set prices down to 40 DMA at 19.93 and 10 DMA at 19.88 towards 19.44. Indicators point to higher prices, but last time futures breached the 20.14 resistance level, prices struggled to gain momentum higher and softened. Prices need to break out above the 20.35 level to confirm the bullish momentum.

Ldn 2nd Month Sugar Futures

Ldn sugar futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 516.60. The RSI is rising, while %K/%D diverging towards the overbought. Likewise, the MACD diff just converged on the upside, a strong buy signal. On the upside, finding support above the 520 could trigger gains through 521.20, the recent highs, towards 525. On the downside, a break below the 10 DMA at the 505.75 level could trigger losses back towards 500. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer lower wick signals that the buying pressure is growing, and the bullish outlook is on the horizon.

NY 2nd Month Coffee Futures

NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 193.40. The RSI is rising, while %K/%D is diverging on the upside towards the overbought. The MACD diff is negative and converging, suggesting higher prices in the near term. On the downside, a break below the key support levels of 10 and 40 DMA at 187.20 and 186.83, respectively, could trigger losses back towards trend support, break below would confirm the outlook of lower prices in the longer term. On the upside, a complete break above the 23.6% fib level at 191.22 could trigger gains through 200 – confirming the break of the symmetric triangle formation. Indicators point to further buying pressures in the near term, however, prices need to break completely above the trend resistance completely to confirm the bullish outlook.

Ldn 2nd Month Coffee Futures

Ldn coffee futures held their nerve yesterday as moderate buying pressure caused the market to close below the previous day close but higher on the day at 2146. The stochastics are converging near the overbought territory, and the MACD diff is positive and converging, suggesting lower prices in the near term. To confirm the outlook of lower prices, futures need to close below the support of 2127 and then target 10 DMA at 2110. The 10 DMA is starting to close in and supporting prices on the downside. Alternatively, confirmation of support around 2127 could trigger gains back towards 2173. A break above this level would confirm the trend on the upside. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance/support to confirm the longer-term outlook.

NY 2nd Month Cocoa Futures

NY cocoa weakened yesterday, as protracted selling pressure triggered a close on the back foot at 2642. The stochastics are falling, signalling a potential continuation of the trend. The MACD diff is negative and diverging. Full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break completely below the 10 DMA support level of 2650. This would confirm the trend for falling prices, down to 2600. On the upside, resistance at 2685 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 2700. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall in the near term.

Ldn 2nd Month Cocoa Futures

Prices weakened yesterday as strong selling pressure triggered a close above 10 DMA level at 2486. The stochastics are falling marginally, and %D has been flat, with signs of convergence on the downside, signalling further selling pressures. Likewise, the MACD is negative and lacks the conviction to point out the market outlook. Prices have been trading in a narrow range, and in order to confirm the change of momentum, prices need to break above the current resistance at 2531 and then 2550. Conversely, a break below 10 DMA at 2483 support level could set the scene for a test of 2450. The indicators struggle to point out an outlook, but a break of support at 2450 could strengthen the momentum on the downside.

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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