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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 level once again. The market closed at 19.76. The stochastics have converged on the upside and the MACD diff is negative and converging, suggesting further bullish momentum in the near term. Prices have been testing 20.34 for a couple of weeks, suggesting appetite above that level; however, weakness prevailed, capping futures performance on the upside. The 19.44 support has also been robust, and a break below that level could break the trend and set prices down to 19.00. On the upside, a breach above the 20.34 level would bring into play the recent firm resistance of 20.80, rejecting the triple top formation. Futures need to break out of the current support and resistance levels to confirm an outlook, but indicators point to further appetite on the upside.

Ldn 2nd Month Sugar Futures

Ldn sugar futures strengthened yesterday as protracted buying pressure prompted a test of the 516.60 level to close at 515.80. The stochastics are rising towards overbought, highlighting growing buying pressures. The MACD diff is negative and converging. To confirm another bullish candle, futures need to close above 520 and then target the 521.20. On the downside, the break below 40 DMA at 502.55 could set the scene for lower prices towards the support of 493.80. However, the market struggled below that level in recent weeks, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term, however, the futures need to break above 520 to confirm that. 

NY 2nd Month Coffee Futures

NY coffee futures edged lower yesterday as prices closed at 196.25. The indicators are beginning to favour the downside, as %K/%D have converged in the overbought, a sell signal is on the horizon, confirming growing selling pressures. The MACD is positive and converging. A break below 10 DMA at 192.43 would bring into play the 40 DMA support level at 188.68. Prices have been relatively well supported above 10 DMA in recent sessions, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 206.35 and then target 210 in the near term. The long bearish candle immediately after the long bullish candle points to a momentum change on the downside, with a growing appetite for lower prices. The break below the 10 DMA would confirm the outlook for lower prices.

Ldn 2nd Month Coffee Futures

Ldn coffee edged higher yesterday as intraday trading caused futures to test appetite at 2100, the market closed above at 2119. Stochastics are falling, and %K/%D is diverging on the downside towards the oversold territory. The MACD diff is negative and diverging, suggesting waning buying pressure. To maintain positive momentum, prices need to close above 10 DMA at 2138 and then target 2173. On the downside, the rejection of prices above 10 DMA could trigger losses back to 2100 and 2034. Buying pressure remains weak, the indicators point to an end of the bullish momentum, and the doji candle confirms market uncertainty for higher prices. A break below 2100 would help confirm the change of trend.

NY 2nd Month Cocoa Futures

NY cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 2677. The RSI is rising, while %K/%D is diverging on the upside. The MACD diff is negative and converging, outlining recent market growth. On the downside, a break back below the support level of 10 DMA at 2634 could trigger losses back towards 40 DMA at 2609, which would confirm the outlook of lower prices in the longer term towards 2600. On the upside, a break above 2675 could trigger gains through resistance towards 2700. The candle body has been strong, and we could see prices trend even higher today, but resistance at 2675 needs to not hold for this to be the case.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot at 1850. The stochastics are rising with the %K/%D diverging towards the overbought area, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards the 123.6% fib level at 1866, but the market needs to take out immediate resistance of 1850. On the downside, the candle found support at 1820, and if the prices break through this level, we could see prices retreat back through 1810 before 1800. The three white soldier formation is a bullish signal, but futures need to take out 1850 in order to confirm the outlook on the upside.

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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