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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 held their nerve yesterday as intraday trading saw a test of appetite at 19.44 once again. This level held firm, and the future closed at 19.40. The stochastics are falling, with %K/%D seen converging in the oversold, and the MACD diff is negative but is also converging on the upside, signalling waning selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 19.10, which could set the scene for futures to take out the trend support at 19.00. On the upside, the market needs to take out resistance of 19.44 and then resistance at 10 DMA at 19.64. The candle found support above 19.24, and a longer upper wick signals appetite for higher prices. If the futures break above the current resistance, we could see prices edge higher, and indicators point to convergence on a downtrend.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened yesterday as traders rejected prices above 511.90, prompting a close at 507.30. The RSI is neutral, with %K/%D diverging on the downside. The MACD diff, however, is negative and struggling to point out an outlook. A break of support at 40 DMA level at 505.98 could trigger losses to the support level of 500. If this level holds firm, we could see prices trend higher back towards 517.60 in the near term, but first, need to completely break above 10 DMA at 508.78. If prices find support above 520, this could prompt a challenge of the 525 in the medium term. The 40 DMA is about to cross above 10 DMA, which is a strong sell signal, and we expect prices to retreat in the near term.

NY 2nd Month Coffee Futures

NY coffee futures gained ground yesterday as moderate bullish sentiment saw futures broke above the 10 DMA resistance level, and the futures closed at 199.03. The stochastics are falling, and the MACD diff is diverging on the downside, signalling growing selling pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 206.35, which could set the scene for futures to take out the 210 level. On the downside, the market needs to take out support at 23.6% fib level at 191.22 and then support at 40 DMA at 190.90. The 10 DMA level crossed below 40 DMA recently and has been providing support for futures prices, and with a longer upper wick on Thursday, confirming the appetite for higher prices.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged lower yesterday as prices failed above the recent highs and then closed below at 2116. The indicators favour the downside; the stochastics are falling, with %K/%D diverging on the downside and edging close to the oversold area, and the MACD diff is negative and diverging, confirming further selling pressures. A break below 2100 would bring into play the support at 2066 and 40 DMA at 2044. On the upside, prices need to break above 10 DMA at 2127 and the recent highs at 2173 before targeting 2200 in the near term. Indicators point to further bearish momentum, however, prices have struggled to break out of the DMAs support/resistance, and a break out of these levels would set the scene for a trend change.

NY 2nd Month Cocoa Futures

NY cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at 2788. This level held firm, and the future closed at 2765. The stochastics are rising, yet seen converging near the overbought, and the MACD diff is converging on the downside, signalling waning buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 2768, which could set the scene for futures to take out the 2800 level. On the downside, the market needs to take out support at 42726 and then support at 2700. The 10 DMA level is at 2690 and is edging higher. The indicators point to an end of bullish momentum and with a longer upper wick on Thursday, confirming the appetite for higher prices but not enough momentum to take out the near resistance.

Ldn 2nd Month Cocoa Futures

Ldn cocoa edged higher yesterday as intraday trading caused futures to test appetite for prices above 1866, the market closed at 1861. Stochastics are rising, and %K/%D is seen converging on the downside, confirming a change of momentum. The MACD diff is positive and converging. To maintain positive momentum, prices need to close above 23.6% fib level at 1866 and then target trend resistance at 1900. On the downside, the rejection of prices above that level could trigger losses back to 1850 before targeting 1837. Indicators and the doji candle confirm ending bullish momentum. The break below the support of 1850 could confirm the outlook of weaker prices.

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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