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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 edged above the previous day's closing price, but the bullish momentum was not strong enough, and futures closed lower at 19.19. The stochastics continue to rise, with %K/%D seen diverging on the upside, and the MACD diff is positive, but upside momentum flattened, suggesting waning buying pressures. The rejection of prices at 19.37 has formed a candle with a narrow body but a long wick on the upside, suggesting a diminishing appetite for higher prices, lacking the conviction to break above the near term resistance. If prices were to break above this level, this could trigger a test of 19.50. To confirm the shooting start formation, futures need to take out 10 DMA at 18.95 and then robust support at 100 DMA at 18.63. A break below this level would confirm the outlook for lower prices.

Ldn 2nd Month Sugar Futures

Ldn sugar futures edged higher yesterday, breaking above resistance at 531.50, the level it struggled to breach in the last month, and closing at 535.20. The stochastics are rising, but with %K/%D converging on the downside in the overbought, and the MACD diff is positive, but the positive momentum is stalling, pointing to a possible change of momentum. The reaffirmation of support at 531.50 could set the scene for higher prices back to test the 540 level. On the downside, futures need to break below the support of 10 DMA at 522.60 before 514.40 in order to end the recent sessions' bull trend. The market needs to completely break below the 10 DMA in the immediate term to improve the indicators' outlook of a trend change.

NY 2nd Month Coffee Futures

NY coffee futures buckled yesterday as protracted selling pressure triggered a close at 221.70. The stochastics are rising. The MACD diff is positive but was flat day-on-day. A break of the support at the 10 DMA level at 220.18 could trigger losses through 212.60, with the tertiary level at 209.65. On the upside, a break above 23.6% fib level at 227.95 could set the scene for a test of 230. A strong candle body suggests protracted selling pressure yesterday, but confirm the growing downside momentum in the near term, a support to of 10 DMA needs to be broken.

Ldn 2nd Month Coffee Futures

Ldn coffee futures softened yesterday after finding support above 10 DMA. The market closed at 2136. The stochastics are falling out of the overbought territory after %K/%D converged on the downside, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 10 DMA at 2136. A break below this level would bring into play the 2100 level, which could set the scene for support at 2078. On the upside, futures need to gain back above 40 DMA at 2169 in order to confirm upside momentum. The reaffirmation of appetite here could trigger gains towards the level at 2200; this could strengthen the trend in the long run on the upside. The candles struggled to break the near term support, and a break below this level would confirm the indicators' outlook.

NY 2nd Month Cocoa Futures

NY cocoa futures lost ground yesterday after prices failed above the 2653 resistance level, prompting a close at 2616. The stochastics are rising, with %K/%D seen diverging on the upside, and the MACD diff is positive and diverging, despite yesterday's protracted selling pressure. On the upside, futures need to close above 2653 resistance and then target 2700 in the long run. On the downside, prices need to close below 10 DMA at 2583 before targeting a 50% fib level at 2553. The bearish engulfing pattern suggests an impeding market downturn, but the indicators point to continued upside momentum, and the futures need to break below 10 DMA to confirm further downside momentum.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures opened higher yesterday, but the resistance of 1800 caused futures to close lower on the day at 1764. The stochastics are seen diverging on the upside, with the %K/%D now rising higher in the neutral territory after converging on the upside, a strong buy signal, and the MACD diff is positive and diverging. A break of the 50 DMA at 1763 could trigger losses through 100 DMA at 1734. On the upside, a break above 1800 could set the scene for bullish momentum towards a 76.4% fib level at 1813. The longer candle wicks have been formed, which points to market indecisiveness about higher prices, however, the indicators point to further upside momentum 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.

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