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 futures held their nerve yesterday as intraday trading saw prices close at 19.04. The RSI is rising, and %K/%D is about to converge on the downside near overbought. The MACD diff is positive and converging, suggesting waning buying pressure. The indicators point to lower prices in the near term, and to confirm the rejection of the support, futures need to take out 19.00 completely. A break below this level towards the 38.2% fib level at 18.49 would confirm the strong bearish momentum. Conversely, appetite for prices back above the 10 DMA at 19.05 could trigger a test of resistance of 40 DMA at 19.22; tertiary resistance stands at 19.41. A positive doji candle after a bearish candle signals market uncertainty and narrowing support and resistance DMAs are creating a tight trading range, a break out of which would set the scene for strong momentum. We anticipate prices on the back foot in the near term.

Ldn 2nd Month Sugar Futures

Prices weakened yesterday as intraday selling pressure triggered a close at 502. The stochastics are rising, but %K/%D is about to converge, signalling a potential change in trend. The MACD is positive and converging, suggesting we could see lower prices in the near term. Prices struggled to break below 10 DMA at 502.06 completely, and a doji candle formation supported market indecisiveness above that level. On the upside, a break above 100 and 40 DMAs at 501.92 and 504.04, respectively, could see the test of 510 level. Conversely, a break below 500 support line could set the scene for a test of 490. We expect prices to soften in the near term.

NY 2nd Month Coffee Futures

NY coffee futures failed above 10 DMA once again yesterday as intraday trading caused them to close at 236.85. The stochastics are falling, with %K/%D diverging on the downside; the MACD diff is negative and diverging, suggesting lower prices in the near term. The rejection of prices at 10 DMA at 240.15 once again has formed a candle with a short body but a longer lower wick, confirming a lack of appetite for higher prices. If prices were to break above this level, this could trigger a test of 250 and then 252.35. To confirm another bearish candle, futures need to take out 229.35 and then 40 DMA support at 224.71. A break below this level would confirm the outlook for lower prices.

Ldn 2nd Month Coffee Futures

Lnd coffee futures edged lower yesterday as intraday trading caused futures to close at 2299. The stochastics have converged on the downside, and the MACD is positive and converging, a strong sell signal. The rejection of prices above 10 DMA but lack of appetite for lower prices has formed a doji candle, suggesting uncertainty about the outlook. If prices were to break below 2268, this could trigger a test of 40 DMA at 2171. On the upside, futures need to take out 10 DMA at 2296 completely and then resistance at 2300. Indicators point to growing selling pressure today, but the futures need to take out 2268 in the near term to confirm this.

NY 2nd Month Cocoa Futures

NY cocoa futures started the day on the front foot but softened throughout the day after finding resistance at 100 DMA. The market closed at 2569. The stochastics are gaining ground in the overbought territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through near term resistance. A break below 50% fib level at 2536 would bring the 40 DMA level into play at 2518, which could set the scene for 2500. On the upside, futures need to gain above 100 DMA at 2576 to confirm upside momentum. The appetite above that level could trigger gains towards the 2600 level, strengthening the trend in the long run on the upside. The hanging man formation, where there was some sell-off during the day, points to an end of the uptrend, however, short candle body point to market uncertainty about the change of trend.

Ldn 2nd Month Cocoa Futures

Ldn cocoa prices softened during the day yesterday; the market closed at 1748. The MACD diff is positive and diverging, suggesting we could see higher prices in the near term. The stochastics are growing and overbought, and this has increased upside impetus despite yesterday’s bearish candle. The market needs to take out support at the 50% fib level at 1729 and then 1709, this could trigger losses back towards the robust support level of 10 DMA at 1702. On the upside, if prices find appetite above 100 DMA level at 1757, the market could set the scene for higher prices to 38.2% fib level at 1766. The long lower wick points to an increased appetite on the downside, and we could see prices edge lower in the near term.

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?