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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 softened on Friday after piercing the support level of 19.74. The market closed lower at 19.53. The stochastics are falling, with %K/%D just converging on the downside, and the MACD diff is negative and diverging. The reaffirmation of support at 19.44 could set the scene for higher prices back to test the 10 DMA level at 19.87. On the downside, futures need to break below the support of19.44 in order to confirm the bearish trend. Indeed, this support level has been tested for the last couple of weeks, suggesting an appetite for prices below this level, however, struggled to break below. The narrow candle body confirms this. The market needs to break below the near term support in the immediate term to confirm the outlook.

Ldn 2nd Month Sugar Futures

Lnd sugar futures edged lower on Friday as intraday trading caused futures to close at 512.60. The stochastics have converged on the upside, but the MACD is negative and lacking the conviction to point out an outlook. The rejection of prices above 517.60 has formed a candle with a long wick on the upside, suggesting an appetite for lower prices. If prices were to break below 10 DMA at 509.81, this could trigger a test of 40 DMA at 503.43. On the upside, futures need to take out 517.60 and then robust resistance at 521.20. Indicators failed to point out an outlook, but the futures need to take out 10 DMA in the near term.

NY 2nd Month Coffee Futures

NY coffee futures rallied on Friday as protracted buying pressure triggered a close on the front foot above at 206.90. The RSI is rising, while %K/%D are diverging on the upside, with %K/%D in the overbought. The MACD diff is positive and diverging, outlining recent market gains. On the downside, a break back below the support level of 200 could trigger losses back towards a 10 DMA at 194.48, which would help confirm the outlook of lower prices in the longer term. On the upside, a complete break above 206.35 could trigger gains through resistance towards 210– July highs. Since breaking out of the symmetrical triangle, the prices have been trending higher, and a break above 210 would confirm the longer-term momentum on the upside.

Ldn 2nd Month Coffee Futures

Ldn coffee futures gained ground on Friday after prices found support at 2100 once again, this triggered a close at 2161. The stochastics are rising, while %K is rising towards the %D, soon to break above it, which would confirm a strong buy signal. The MACD diff is negative and converging, suggesting we could see futures break resistance at 2173. In order to confirm higher prices, futures need to close above the current resistance and 2200. On the downside, if resistance at 2173 holds firm, this could prompt a break of current support at 2100, setting the scene for lower prices at 2034. Futures have been trading in a narrow range, and Friday’s long candle body points to appetite on the upside, however, futures needs to break above 2173 to confirm this.

NY 2nd Month Cocoa Futures

NY cocoa futures rallied on Friday as protracted buying pressure triggered a close on the front foot at 2734. The RSI is rising, while %K/%D are diverging on the upside. The MACD diff is negative and converging on the upside. On the downside, a break back below the support level of 10 DMA at 2639 could trigger losses back towards 40 DMA at 2616, break below would confirm the outlook of lower prices in the longer term. On the upside, a complete break above 2726 could trigger gains through towards 2768 – November 2020 highs. The market rally has been strong, with three white soldiers formation confirming the strength of bull sentiment. We could see prices trend even higher today, but support at 2675 needs to hold firm for this to be the case.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures held their nerve on Friday, causing the market to close at 1859. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff just converged on the upside, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close back above 123.6% at 1866 and then target 1900, the September 2020 highs. The 10 DMA is closing in and supporting prices on the downside. However, prices need to break below 1810 to test 1800. The narrow candle body with long upper and lower wicks points to market uncertainty about the direction of the move, and the futures need to break above the current resistance to confirm the near-term outlook.

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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