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 market is closed today for President's Day. NY sugar futures gained pace at the start of the day on Friday; however, prices struggled above 10 DMA once again and closed on the back foot at 17.62. The stochastics are falling, with %K/%D seen diverging on the downside towards the oversold. The MACD, however, lacks the conviction to point out an outlook as it flips between positive and negative territory. The rejection of higher prices at 10 DMA at 17.73 may prompt a break back towards support at 17.48; a subsequent breach of this level could trigger losses towards 17.29. On the upside, a break of 10 DMA may prompt futures to test 18.00 before 40 DMA at 18.11. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. An open above the previous day’s close on Friday and long upper wick point to an appetite out of the current trading range, and 10 DMA remains a robust resistance. If this level holds, we would expect prices to trace lower in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures struggled to break above 10 DMA resistance on Friday, and intraday trading saw prices close below at 478.30. The RSI is falling, but %K and %D are showing signs of convergence, as %K is tailing off out of the oversold, which could signal a change of momentum to more bullish in the near term. The MACD diff is negative and converging marginally, suggesting some appetite for higher prices, but futures need to break the resistance of 10 DMA at 481.88 to trigger the momentum. A break above this level towards 40 DMA at 488.49 would confirm the stronger positive momentum. Conversely, lack of appetite for prices below 471.80 trigger a test of trend support of 466. A gravestone doji candle shows rejection of lower prices but lacked the conviction to break above the near term resistance levels in the form of moving averages.

NY 2nd Month Coffee Futures

NY coffee futures softened on Friday after breaking below the support of 10 DMA. The market closed at 246. The stochastics are falling, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through support of 244.75. A break below this level would bring into play the 40 DMA level 239.13. On the upside, futures need to gain back above 10 DMA at 250.64 in order to confirm upside momentum. Appetite for higher prices here could trigger gains towards the level at 254.75; this could strengthen the trend in the long run on the upside. The longer lower wick points to an increased appetite on the downside, and we could see prices edge lower in the near term.

Ldn 2nd Month Coffee Futures

Prices weakened on Friday as moderate selling pressure triggered a close at 2255. The stochastics have converged on the downside and are now falling, with the %K/%D diverging out of the overbought, signalling a strengthening downside momentum. The MACD is positive and converging. In order to confirm the indicators, prices need to break below the current resistance at 10 and 40 DMA levels at 2255 and 2257, respectively, and then 100 DMA at 2235. Conversely, a break above the 2279 resistance line could set the scene for a test of 2300. Prices need to break below the near term DMA support levels to confirm the downside momentum.

NY 2nd Month Cocoa Futures

NY cocoa futures broke below support at 2653 and closed on the back foot at 2640. The stochastics are falling, with %K/%D seen diverging on the downside. The MACD is negative and diverging, confirming the momentum for further downside impetus. The rejection of higher prices may prompt a break towards support at 40 DMA at 2622, a subsequent breach of this level could trigger losses towards 2600. On the upside, a break of resistance at 2653 may prompt futures to test 2675. We have seen strong downside momentum in the last week, but growing upper and lower wicks could point to a slowdown in the recent bearish trend.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures held their nerve on Friday after failing above the trend support level. The market closed lower at 1732. The stochastics are falling, with %K/%D just diverging on the downside, with %K now in the oversold, and the MACD diff is negative and diverging. On the downside, futures need to break below the support of 50% fib at 1730 in order to confirm the continuation of the bearish trend. Indeed, the trend support level has been robust in the last couple of months, a break below this level would suggest strong conviction on the downside. Alternatively, the reaffirmation of support at 1730 could set the scene for higher prices back to test the 50 DMA level at 1752 once again, confirming an inverse hammer formation.



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.