1. Reports
  2. Daily Softs Technical Charts

Non-independent Research Daily Softs Technical Charts

Non-independent Research

Daily Softs Technical Charts

Read disclaimer

NY 2nd Month Sugar Futures

NY sugar

NY sugar futures gained ground yesterday as buying pressure prompted a test of 19.10. The market closed at 19.05. The stochastics have converged on the upside and now leaving the oversold, and the MACD diff is negative and converging, suggesting strong bullish momentum in the near term. Tuesday’s break above the 10 DMA of 18.70 points to a strong buy signal, and we anticipate prices to test the longer-term moving averages today. A breach above 23.6% fib level at 19.19 level would bring into play the recent firm resistance of 40 DMA at 19.22. On the downside, the fall below 18.57 could trigger losses through trend support at 18.40 and then target recent lows at 18.17. The convergence of DMAs should provide strong support/resistance for prices, and if 10 DMA remain firm, we could see prices edge higher.

Ldn 2nd Month Sugar Futures

London sugar

Ldn sugar strengthened yesterday, as buying pressure triggered a close on the front foot at 501.20. The stochastics are rising after converging on the upside, a strong buy signal. The MACD diff is negative and converging. Long bullish candle body with short upper wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 40 DMA at 503.25. This would confirm the trend for rising prices back to the trend line at 512.22. On the downside, a breach of support at 10 DMA at 494.51 would confirm that the recent bullish trend was short-lasting. This could also trigger losses towards the 481.50. Indicators point to higher prices, but prices need to break above the 40 DMA to confirm the strong bullish momentum.

NY 2nd Month Coffee Futures

NY coffee

NY coffee futures weakened yesterday as futures failed into the resistance at 252 and closed at 243.30. The stochastics are converging on the downside near the overbought. The MACD diff is positive and converging. A break below support at 10 DMA at 240.21 would confirm a bearish engulfing candle pattern. This may pave the way for lower prices to 229.65, with the tertiary level at 220. Conversely, the reaffirmation of support above 244.75 would suggest higher prices and a close above 252, setting the scene for higher prices towards 260, but prices struggled to break above the near term resistance in the last couple of sessions. Yesterday’s candle wicks being larger than Monday’s suggests a growing appetite for lower prices and could trigger a break of support today. The indicators are pointing to a decline in prices in the near term. 

Ldn 2nd Month Coffee Futures

London coffee

Ldn coffee softened yesterday, as protracted selling pressure triggered a close on the back foot at 2273. The stochastics are rising, with %K seen tailing off on the downside, highlighting waning buying pressures. The MACD diff is positive and converging, suggesting increasing downside pressures; this could set the scene for lower prices towards the 40 DMA support level at 2217, but futures need to break below the 10 DMA level at 2254 first. A break below this would confirm the trend for falling prices, down to 2200. On the upside, resistance at 2327 has proven to be strong before, and an appetite above that level would strengthen the bullish momentum. This could also trigger gains towards 2350. Long candle body along with longer lower wick point to an increased appetite on the downside, however, the futures need to break completely below 10 DMA to confirm the outlook.

NY 2nd Month Cocoa Futures

NY cocoa

NY cocoa edged higher yesterday as moderate bullish momentum caused futures to test appetite at 2500, the market closed below at 2485. Stochastics are rising, and %K/%D is diverging on the upside. The MACD diff, however, just converged on the upside, suggesting strong buying pressures in the near term. To maintain positive momentum, prices need to close above 2500 and then target 200 DMA at 2510. On the downside, the rejection of prices above 2500 could trigger losses back to 10 DMA at 2442. Buying pressure remains weak, but the indicators point to an acceleration of the bullish momentum.

Ldn 2nd Month Cocoa Futures

London cocoa

Ldn cocoa futures held their nerve yesterday, causing the market to close at 1699. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close above 1700, the level futures struggled to break above in the last couple of sessions, and then target 200 DMA at 1707. A break above that level could set the scene for a 61.8% fib level at 1719. On the downside, a break below 50% fib level at 1691 could set the scene for 1662 and then 1628, the recent lows. The narrow candle body with a longer lower wick points to more appetite on the upside, but the futures need to break out of 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.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Daily Report Base Metals

Daily market commentary on LME aluminium, copper, lead, nickel, tin and zinc.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

FX Monthly Report December 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we focus on China, highlighting the fundamentals for the macroeconomy, as well as any changes to the PBOC in the coming months. The recent cut in the risk reserve requirement suggests monetary loosening. We also outline the movement between the onshore and offshore currency for those looking to arbitrage or hedge their exposure. This analysis gives an indication of the average width of the spread what key levels to look out for.

Quarterly Metals Report – Q4 2021

The global macro picture is starting to present some downside risks in the near term as China's economy is set to slow further and supply-chain bottlenecks continue to cap growth. New orders and new export orders in China are contractionary, and we expect demand in Q4. Order backlogs and lead times for products will continue in Q4, limiting growth, and real consumption is weaker than it looks. Higher costs from shipping, raw materials and energy will take their toll on the consumer, and we expect end-user demand to suffer. The final piece of the jigsaw is the reduction in stimulus from central banks and how that will impact financial markets, bond yields, and the dollar has rallied while stocks corrected, but what will this trend continue?