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 lost ground on Friday as selling pressure intensified, prices struggled to break below 10 DMA once again, closing at 17.81. The MACD diff is positive and diverging marginally, suggesting a lack of appetite for higher prices. The stochastics are diverging on the upside, but %K is seen tailing off, which could point to convergence in the near term. To help confirm another bearish candle, prices need to break below through 17.48 which is a robust support level, secondary support stands at 17.29. On the upside, if futures can find support around 17.50, this could set the scene for higher prices back above 18.00 before targeting 40 DMA at 18.23. Volumes dropped from Wednesday trading but is seen on the rise again, and if the futures break below the near term support, we could see selling pressure intensify.

Ldn 2nd Month Sugar Futures

Ldn sugar futures softened on Friday after finding support above 10 DMA once again. The market closed at 482.10. The stochastics are gaining ground, diverging on the upside, and the MACD diff is positive and diverging, highlighting the recent market strength. Today, the candle has opened well below the key support levels, and if the selling pressure persists, this would bring into play the 471.80 level, which could set the scene for 470. On the upside, futures need to gain back above 480 and 494.90– the previous day’s high - in order to confirm upside momentum. Appetite above these levels could trigger gains towards the level at 100 DMA at 499.47; this could strengthen the trend in the long run on the upside. The big gap between today’s trading and Friday suggests strong selling pressure, but the futures need to break below 471.80 to confirm this momentum in the near term.

NY 2nd Month Coffee Futures

NY coffee futures softened on Friday after the candle opened below the previous day’s close. The market closed lower at 252.05. The stochastics are falling, with %K/%D about to converge on the downside in the overbought territory, and the MACD diff is positive and converging, paving the way for lower prices in the near term. The reaffirmation of support at 250 could set the scene for higher prices back to test the 260.45 level – recent highs. On the downside, futures need to break below the support of 10 DMA at 245.67 in order to confirm the bearish trend. The trend support level has been robust, and a break below this level could help confirm lower prices, breaking out of the ascending triangle pattern in the longer term.

Ldn 2nd Month Coffee Futures

Lnd coffee futures edged marginally higher on Friday, but the bullish momentum was not strong enough to break above 2279, and futures closed at 2270. The stochastics continue to rise, yet seen converging, as %K is seen tailing off in the overbought, and the MACD diff is positive and diverging. The rejection of prices at 2279 has formed a candle with a narrow body but a long wick on the upside, suggesting markets testing and rejecting prices above resistance. If prices were to break above this level, this could trigger a test of 2300 and then 2381, the recent highs. To confirm the shooting star formation, futures need to take out 100 and 10 DMAs at 2228 and 2222, respectively. A break below these levels would confirm the outlook for lower prices.

NY 2nd Month Cocoa Futures

NY cocoa futures held their nerve on Friday as intraday trading saw prices close at 2811. The RSI is falling, and %K/%D are about to converge on the downside, a strong sell signal. The MACD diff is positive and is showing signs of convergence, suggesting a lack of appetite for higher prices, but futures need to break below 2800 to trigger the momentum. A break below this level towards 2726 would confirm the growing selling pressure. Conversely, an appetite for prices back above 2838 could trigger a test of 2850. A doji candle with a long lower leg shows indecision about higher prices. The indicators point to a change of trend in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures started the day on the front foot on Friday but softened throughout the day after finding resistance at 1858. The market closed at 1848. The stochastics are converging in the overbought territory, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term. A break below 1837 would bring into play the 76.4% fib level at 1813, which could set the scene for 1800. On the upside, futures need to gain back above 1858 in order to confirm upside momentum. The appetite above that level could trigger gains towards the 1888 level; this could strengthen the trend in the long run on the upside. The hanging man formation points to an end of the uptrend, and we expect to see the end of the bull run 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

Our daily commentary, covering market news and closing prices of LME aluminium, copper, lead, nickel, tin, zinc, iron ore, steel, and precious metals.

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. This week’s focus is on EURPLN and the currency trajectory following the deteriorating economic outlook in Europe and rising rates in Poland.

FX Monthly Report May 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look at the current inflation outlook across LATAM, Europe, U.S. and U.K. and gauge if central banks will slow their rate hikes. Economic data is weakening and China's poor growth and woeful demand could impact policy makers' decisions. 

Quarterly Metals Report – Q1 2022

Our analysts provide in-depth analysis into the current macroeconomic conditions and how near-term choppiness may subside in the coming months, once the Fed has confirmed its stance on Monetary Policy. The backwardated spreads in the metals market outline the tightness, and the geopolitical tensions between Russia and Ukraine could compound tightness in Europe due to lower energy, metals, and grain exports.