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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 yesterday after prices found support at 17.66 and formed a double bottom; this triggered a close at 18.03. The stochastics are falling, but converging, as %K is on the rise. The MACD diff is negative and about to converge on the upside, suggesting we could see futures test resistance at 18.17 once again. On the upside, in order to confirm the double bottom formation, futures need to close above the current resistance and 10 DMA at 18.29. The trend resistance has been robust, and prices struggled above that level. On the downside, a break back below 17.66 would trigger losses to 17.50. The indicators point to a change of momentum, and we expect prices to gain footing in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar held its nerve yesterday as intraday trading caused futures to close above 484.50. RSI is rising marginally, and %K/%D is converging on the upside, confirming the change of trend in the near term. The MACD is negative and converging, indicating the change to a buying momentum. To confirm indicated a change in trend, prices need to close above 490 and then target 10 and 40 DMAs at 493. On the downside, the rejection of prices above 490 could trigger losses back to 481.50 before targeting 477. The candle points to an increased appetite on the upside, but resistance at 10 and 40 DMAs is likely to limit gains in the near term. Additionally, the cross of 10 DMA below 40 is a sell signal, and if futures struggle above these levels, we could see additional softness in the near term.

NY 2nd Month Coffee Futures

NY coffee futures held their nerve yesterday as intraday trading saw futures test appetite at 10 DMA. This level held firm, and the future closed at 237.30. The stochastics have crossed on the upside, but the MACD diff is negative but lacks momentum to point out an outlook. To confirm the outlook for higher prices, futures need to break above the resistance at 10 DMA at 237.89, which could set the scene for futures to take out the 240 level. On the downside, the market needs to take out support at 40 DMA at 235.27 and then trend support at 232.62. The 10 and 40 DMAs are capping futures in both directions, but the stochastics are pointing to upcoming strength. If that is to materialise, the futures need to break above 10 DMA resistance in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures held their nerve yesterday as intraday trading saw futures test appetite at 2200 once again, closing below at 2176. The stochastics remain oversold, with %K/%D seen fluctuating but struggling to point out an outlook, and the MACD diff is negative but is converging marginally on the upside, signalling waning selling pressures. On the downside, futures need to break below the support at 2173, which could set the scene for futures to take out the 23.6% fib level at 2129. On the upside, the market needs to take out resistance of 10 DMA at 2199. The candle found support above 2173, 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 of a downtrend.

NY 2nd Month Cocoa Futures

NY cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 2660. The RSI is rising, while %K/%D have converged on the upside and now rising. The MACD diff is negative and converging, outlining recent market growth. On the downside, a break back below the support level of 2567 could trigger losses back towards 40 DMA at 2550, a break below 2500 would confirm the outlook of lower prices in the longer term. On the upside, a break above 2675 could trigger gains through 2700 resistance towards 2726 – September 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.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures surged yesterday, breaking above resistance at 1750 and closing at 1787. The stochastics are rising, with %K/%D just converging on the upside and now edging higher, and the MACD diff is negative and converging. Appetite for prices above 1800 could set the scene for higher prices back to test the 76.4% fib level at 1813. This would confirm the three white soldiers formation and the outlook for higher prices. On the downside, futures need to break below the support of 1750 in order to end the recent sessions’ bull trend. Then, the 50, 100 and 200 DMAs are providing robust support levels. The market needs to gain a footing above 1800 in the immediate term to confirm a further bullish 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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