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 edged higher on Friday as marginal appetite caused futures to test appetite for prices at 18.84, but the market closed below at 18.81. Stochastics are falling, but %K is seen tailing off near the oversold, confirming the possible change of momentum. The MACD diff is negative and diverging. To maintain positive momentum, prices need to close above the 18.84 level and then target 19.00 before 19.50 - last weeks’ highs. On the downside, the rejection of prices above 10 DMA at 18.93 could trigger losses back to the 40 DMA at 18.21 before targeting 18.00. Buying pressure subsided as prices struggled to break above the 18.84 level, and the volume declined in the last week’s trading session; however, the stochastics point to a possible change of momentum in the near term/ To confirm this, the futures need to break above the near term resistance.

Ldn 2nd Month Sugar Futures

Ldn sugar futures strengthened on Friday as protracted buying pressure triggered a close on the front foot at 520.50. The RSI is rising, while %K/%D is converging on the upside. Likewise, the MACD diff is positive and diverging. On the upside, finding appetite above the 520 level could trigger gains through 530 towards 531.50 – the recent highs. On the downside, a break below the 510 level could trigger losses back towards trend support of 501.12. A break below it would signal a strong selling pressure in the longer term. A longer candle body signals that the buying pressure is growing, and the break above 10 DMA confirms that a bullish outlook is on the horizon.

NY 2nd Month Coffee Futures

NY coffee futures gained ground on Friday as buying pressure prompted a test of 10 DMA 221.62 once again. The market closed at 220.05. The stochastics are rising out of the oversold, and the MACD diff is negative and converging, suggesting diminishing downside momentum in the near term. Prices have been testing 10 DMA for the last week, suggesting appetite above that level. The support at 210 has been robust, and a break below that level could break the recent upside momentum and set prices down to 38.2% fib level at 207.85 before 200. On the upside, a breach above the 10 DMA level at 221.62 would bring into play the recent firm resistance of 100 DMA at 231.93. The convergence of DMAs provides strong resistance for prices, but if the futures break above the 10 DMA, we could see prices edge higher.

Ldn 2nd Month Coffee Futures

Ldn coffee strengthened on Friday but struggled to break above 40 DMA, closing below at 2167. The stochastics are rising, with %K/%D is seen diverging on the upside, and %K is now overbought. The MACD diff is positive and diverging, pointing to rising buying momentum. To confirm the trend for rising prices, futures need to take out 40 DMA at 2173 before 2200. Likewise, on the downside, a 10 DMA support at 2108 has been formed, and a break below this level could trigger losses to support at 2078. If this level fails, then we would be looking for a start of a possible downtrend, down to 2000 and below. The indicators are pointing to further price strengthening in the near term, but 40 DMA 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.

NY 2nd Month Cocoa Futures

NY cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at 2583. This level held firm, and the future closed at 2568. The stochastics are falling, but %K is seen tailing off, and the MACD diff is negative and converging, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 10 DMA at 2601; this could set the scene for futures to take out the 40 DMA at 2631. On the downside, the market needs to take out the trend support of 2505 and then 2436. If the futures break above the current resistance, we could see prices edge higher, confirming the indictors’ outlook.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged higher on Friday as intraday trading saw prices test resistance at 1750. The market closed at 1744. The RSI is rising, while %K/%D is falling but showing signs of convergence. The MACD diff is negative and converging, suggesting growing buying pressure. The indicators point to higher prices in the near term, and to confirm the rejection of the resistance, prices need to take out 1750. A break above this level towards 50 DMA at 1762 would confirm the strong upside momentum. Conversely, an appetite for prices below 1700 could trigger a test of support at 1692. Indicators point to upside momentum, and we expect prices to gain ground 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.