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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 on Friday as moderate buying pressure prompted a test of 10 DMA once again. The market closed at 19.46. The stochastics are converging on the upside near the oversold, and the MACD diff is negative and converging, suggesting softening bearish momentum in the near term. A recent break below the 19.44 support level pointed to strengthening selling pressures, however, but prices struggled below 19.10 in the last couple of sessions. A breach back above 10 DMA at 19.48 level would bring into play the recent firm resistance of 40 DMA at 19.95. Futures need to take out 20 in order to confirm the trend. On the downside, the fall below the previous day closing prices at 19.15 could trigger losses through 19.10 and 19.00. The convergence of DMAs provides strong support/resistance for prices, and if 19.10 remain firm, we could see prices edge higher.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher on Friday as intraday trading saw prices tested resistance at 514.40. The market closed at 510.90. The RSI is rising, and %K/%D is negative but seen converging. The MACD diff is negative but lacking appetite to point out an outlook. The indicators paint a mixed picture, so to confirm the rejection of the support, prices need to take out 40 DMA at 506.63. A break below this level towards 500 would confirm the strong bearish momentum. Conversely, appetite for prices above the 10 DMA at 5101.7 could trigger a test of resistance at 517.60; tertiary resistance stands at 523. A narrow candle body after the three black crows formation signals uncertainty about the outlook for lower prices, and the futures need to take out the 40 DMA to confirm the outlook for falling prices.

NY 2nd Month Coffee Futures

NY coffee futures sold off on Friday as protracted selling pressure prompted a break of support at 209.65 to close on the back foot at 206.25. The stochastics have converged on the downside and are now diverging lower, and the MACD diff is positive and converging, suggesting lower prices in the near term. The break of the key support level 10 DMA at 205.28 would suggest an appetite for lower prices. Secondary and tertiary support stands at 200 and 195, respectively. If prices find support at 10 DMA, this could prompt a recovery back above 217.85. In the medium term, we could see futures break above 220. The long candle body pointed to a strong appetite on the downside, but prices struggled below 10 DMA and need to break below that level to confirm the downward trend.

Ldn 2nd Month Coffee Futures

Ldn coffee futures weakened on Friday as futures failed to break above the resistance at 2173 and closed at 2121. The stochastics are seen converging on the downside. The MACD diff is negative and diverging. A break below 2100 may pave the way for lower prices to 40 DMA at 2085, with the tertiary level at 2066. Conversely, the reaffirmation of support above 2127 would suggest higher prices and a close above 2173, setting the scene for higher prices towards 2200. The futures have been struggling to break out of the current support/resistance levels and, with indicators painting a mixed picture about the outlook, we watch out for a break out of the levels before confirming a longer-term outlook.

NY 2nd Month Cocoa Futures

NY cocoa futures held their nerve on Friday, causing the market to close at 2653. The stochastics are falling, with %K/%D diverging towards the oversold, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the outlook of higher prices, futures need to close above 40 DMA at 2652 and then target 2675. On the downside, a break below the 2600 level could set the scene for 2567, the recent lows. A bullish candle with a narrow body and longer lower wick after a similar bearish candle points to uncertainty about the outlook, and the futures need to break out of current resistance to confirm the near-term outlook on the upside.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures closed above a key support level of 50 DMA at 1816. The RSI is falling, and %K/%D is diverging on the downside in the oversold territory. The MACD diff is negative and diverging, suggesting growing selling pressures. The indicators point to lower prices in the near term, and to confirm the rejection of the support; prices need to take out 50 DMA at 1805. A break below this level towards 1770 would confirm the strong bearish momentum. Conversely, appetite for prices above the 1850 level could trigger a test of 123.6% fib level at 1866, tertiary resistance stands at 1888. A spinning top candle after a positive doji candle signals uncertainty about the outlook for trend reversal, and a break below the key support confirms there is more appetite for downside potential.

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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