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 futures gained ground yesterday as protracted buying pressure prompted a close above 10 DMA at 18.72. The stochastics are rising, and the %K/%D is diverging towards the overbought, suggesting continued buying pressures in the near term. The MACD diff is seen diverging on the upside. To confirm another bullish candle, futures need to break above the 100 DMA at 18.66 completely and then 19.00. On the downside, the break below 18.17 could set the scene for lower prices towards the support of 10 DMA at 17.97. However, the market was well supported above that level in recent sessions, but the long lower wick confirms that the buying pressure is stalling as prices struggle to break 100 DMA.

Ldn 2nd Month Sugar Futures

Ldn sugar futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 508.40. The RSI is rising, while %K/%D are diverging on the upside., with %K now in the overbought. The MACD diff is positive and diverging, outlining recent market growth. On the upside, a break above 510 could trigger gains through 517.80 – the November highs. On the downside, a break back below the trend support level of 502.93 could trigger losses back towards 100 DMA at 495.85, a break below 490.30 would confirm the outlook of lower prices in the longer term. The market rally has been strong, with three white soldiers formation confirming the strength of bull sentiment. The 10 DMA is about to cross the 40 DMA level, which could further add some upside momentum. We could see prices trend even higher today, but support at 502 needs to hold firm for this to be the case.

NY 2nd Month Coffee Futures

NY coffee futures weakened yesterday after breaking below the support of 227.95. The market closed at 222.90. The stochastics are falling in the oversold territory, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through the support of 220. A break below this level would bring into play the 209.65 level, which would confirm the break out of the ascending triangle. On the upside, futures need to gain back above 100 DMA at 230.39 in order to confirm upside momentum. Appetite for higher prices here could trigger gains towards the level at 240; this could strengthen the trend in the long run on the upside. The longer candle body and a cross of 10 DMA below the 40 DMA one point to growing conviction on the downside in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures softened marginally yesterday as trading saw futures test and close at 2013. The stochastics are falling, with %K/%D in the oversold. Likewise, the MACD diff is negative and diverging, signalling growing selling pressure. To confirm the outlook for higher prices, the market needs to take out support at 2010 and then support at 1952. On the upside, futures need to break above the resistance at 2078, which could set the scene for futures to take out the 23.6% fib level at 2137. Yesterday’s short candle body suggests a lack of appetite below 2010, but DMAs are providing robust resistance levels, suggesting we could see prices edge lower.

NY 2nd Month Cocoa Futures

NY cocoa strengthened yesterday but struggled to break above 2567 once again, closing below at 2562. The stochastics are rising, with %K/%D seen converging on the upside in oversold and now rising, a strong bull signal. The MACD diff is negative and converging, pointing to rising buying momentum. A bullish candle with a longer lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the 2567 level. This would confirm the trend for rising prices, up to 10 DMA at 2599. Likewise, on the downside, a 200 DMA support at 2541 has been formed, and a break below this level could trigger losses to 2500. If this level fails, then we would be looking for a start of a possible downtrend, down to 2436 and below. The indicators are pointing to further price strengthening in the near term, but 2567 resistance has proven to be robust in recent days, and longer lower wick after a doji candle points to a lack of appetite above these levels.

Ldn 2nd Month Cocoa Futures

London cocoa futures edged higher yesterday as intraday trading saw prices close at 1701. The stochastics are beginning to rise, with the %K/%D converging on the upside in the oversold is now rising, and the MACD diff is negative and converging. A break of the 38.2% fib level at 1692 could trigger losses through 1680, with the tertiary level at 1664. On the upside, a break above 1700 could set the scene for bullish momentum to 200 DMA at 1725. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 1700, but indicators point to further upside momentum.

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.