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 strengthened yesterday as protracted buying pressure triggered a close on the front foot at 19.70. The stochastics are rising, with %K/%D is diverging on the upside in the overbought. The MACD diff is positive and diverging. Growing bullish candle body suggests growing buying pressures. Indeed, the volumes spiked to February levels on Thursday. This could set the scene for higher prices to break above 19.75. This would confirm the trend for rising prices, up to 20.00 and 20.38. On the downside, a breach of support at 19.50 would strengthen the case for a change of momentum. This could also trigger losses towards 10 DMA at 19.41 before 19.00. Indicators are overbought, however, to confirm the outlook for rising prices, futures need to break above 19.75.

Ldn 2nd Month Sugar Futures

Ldn sugar futures opened above the previous day’s close, prompting a close on the front foot at 539.40. The stochastics are rising and diverging, with %K/%D, just converging on the upside and rising, a strong buy signal. The MACD diff is negative and converging on the upside, outlining the strength in the market. Buying pressure has been growing, and a recent close above the key resistance level of 10 DMA suggests an increased appetite for higher prices. If prices can gain a footing above the 540 level, the bulls could then target 547.90 in order to regain upside conviction. Alternatively, a break back below 10 DMA at 534.47 could set the scene for lower prices at 531.50, which is seen providing robust support from the downside. We anticipate prices to remain on the front foot in the near term.

NY 2nd Month Coffee Futures

NY coffee futures weakened yesterday as futures failed into the resistance at 40 DMA and closed at 226.15. The stochastics are about to converge on the downside as they emerge from overbought. The MACD diff is positive and converging, pointing to growing selling pressure. A break below 10 DMA at 224.47 would confirm the outlook for lower prices and the three black crows formation, a clear bearish sentiment. This may pave the way for lower prices to 221, with the tertiary level at 212.60. Conversely, the reaffirmation of support above 10 DMA would suggest higher prices and a close above 40 DMA at 230.75, setting the scene for higher prices towards 100 DMA at 234.04. Yesterday’s candle body and the indicators are pointing to a further increase in prices in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged lower yesterday after investors rejected prices above 2104, prompting a close at 2066. The stochastics are falling, with RSIs in neutral territory; the %K/%D is diverging on the downside, about to enter the oversold territory. The MACD diff is negative and diverging, indicating improving sentiment on the downside. To confirm another bearish candle, prices need to break below the support level at 2019 before the 2000 level. Tertiary support stands at 1987, a break below would confirm the three black crows formation. On the upside, futures need to close back above 10 DMA at 2119 and then 40 DMA at 2145 in the near term. Near term momentum is on the downside, and the resistance at 10 DMA has created a robust resistance.

NY 2nd Month Cocoa Futures

NY cocoa futures opened higher day-on-day, closing at 2627. The stochastics are falling, but %K is seen tailing off on the upside, which could suggest a change of momentum in the near term. The MACD diff struggled to point out an outlook. On the upside, futures need to break below the robust resistance levels of 40 and 10 DMA at 2629 and 2636, respectively, to trigger the momentum. Prices would then need to take out the 2667 level. Conversely, an appetite for prices below 2600 could trigger a test of support of 100 DMA at 2564. A dragonfly doji candle shows rejection of higher prices and could point to an end of the bullish sentiment we have seen in the last couple of days. The indicators struggle to point out an outlook, and subdued volumes point to market uncertainty.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 1788. The RSI is rising, while %K/%D is about to converge on the upside. The MACD diff is positive and diverging, confirming rising buying pressures. On the upside, a break above the 1800 level could trigger gains through the 76.4% fib level at 1813. On the downside, a break below the support levels of 50 and 100 DMA at 1763 and 1742 could trigger losses back towards 1700, break below this level would confirm the outlook of lower prices in the longer term. For the last couple of weeks, the futures found resistance at the 1800 level; however, indicators highlight that the selling pressure is subsiding, and the bullish outlook is on the horizon.

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.