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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 increased marginally yesterday as intraday trading saw prices close above support of 10 DMA at 19.32. The stochastics are overbought, with the %K about to break below %D in the overbought, and the MACD diff just converged on the downside, a strong sell signal. A break of the 10 DMA at 19.25 could trigger losses through 19.00, with the tertiary level at 18.84. On the upside, a break above 19.50 could set the scene for bullish momentum towards 20.00. However, this level was robust in recent weeks, and the spinning top formation has been formed, which points to market indecisiveness, however, a fall below the current support would confirm further bearish momentum.

Ldn 2nd Month Sugar Futures

Ldn sugar futures opened lower yesterday but consolidated during the day, testing resistance at 531.50. The market closed at 530.70. The RSI is rising, but %K/%D is negative and diverging. The MACD diff just converged on the downside, suggesting growing selling pressure. The indicators point to lower prices in the near term, and to confirm the rejection of the support, prices need to take out 520. A break below this level towards 510.70 would confirm the strong bearish momentum. Conversely, appetite for prices back above the 10 DMA level at 532.65 could trigger a test of resistance at 540; tertiary resistance stands at 547.90, recent highs. A break below the support at 10 DMA and the indicators suggest growing selling pressure, but yesterday's bullish candle shows uncertainty about lower prices. To confirm the downside momentum, the futures need to break below 520.

NY 2nd Month Coffee Futures

NY coffee futures consolidated yesterday, breaking above trend resistance and closing at 226.45. The stochastics are edging towards the overbought territory, and the MACD diff is positive and diverging on the upside, suggesting the futures upside momentum. On the upside, futures need to break above the fib level at 227.95 in order to confirm upside impetus. The reaffirmation of appetite here could trigger gains towards the 40 and 100 DMA levels at 233; this could strengthen the trend in the long run on the upside. A break back below the current support of 10 DMA at 221.70 would bring into play 212.60, which could set the scene for support at 209.65. The 40 DMA is about to cross below the 100 DMA level, which would be a strong sell signal and provide robust resistance levels for the futures. We see prices edge higher today.

Ldn 2nd Month Coffee Futures

Ldn coffee futures gained ground yesterday as buying pressure triggered a close on the front foot at 2152. The stochastics are falling with the %K/%D about to converge on the upside, as the MACD diff positive and diverging. This suggests we could see higher prices in the near term towards 2200, but the market needs to take out immediate resistance of 40 DMA at 2162. On the downside, the candle found support at 10 DMA at 2146, and if the prices break through this level, we could see futures retreat back through the 2100 level to 2078. A break of 10 DMA resistance is a bullish signal, but futures need to take out another robust resistance at 40 DMA in order to confirm the outlook on the upside.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher yesterday as intraday trading saw prices close at 2687. The RSI is rising, and %K/%D is rising in the overbought. The MACD diff is positive and diverging, but momentum is slowing, suggesting waning buying pressure. The indicators point to deceleration of upside momentum in the near term, and to confirm the rejection of the support, prices need to take out 2667. A break below this level towards 40 DMA at 2643 would confirm the double top formation and a subsequent bearish momentum. Conversely, an appetite for prices above the 2700 level could trigger a test of 2726. A small candle with long upper and lower wicks after the three white soldiers' formation signals uncertainty about the outlook for higher prices, and the futures need to take out the 40 DMA to confirm the outlook for falling prices.

Ldn 2nd Month Cocoa Futures

Ldn cocoa held the nerve yesterday as intraday trading caused futures to close at 1796. %K/%D is are rising, and %K is overbought, and the MACD is diverging on the upside marginally, confirming market uncertainty further upside momentum; this is confirmed by Thursday's spinning top formation. To maintain positive momentum, prices need to close above 1800 and then target a 76.4% fib level at 1813. On the downside, the rejection of prices above 1800 could trigger losses back to the 61.8% fib level at 1767, the recent support level. Buying pressure has been weak, confirmed by waning volumes, and the indicators point to a stall of bullish momentum. The break of support at 50 DMA at 1761 could confirm the outlook for lower prices in the near term.

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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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