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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 strengthened yesterday as protracted buying pressure prompted a test of the 40 DMA level once again to close at 19.23. The stochastics are seen converging on the upside as %K edged higher from oversold, highlighting waning selling pressures. The MACD diff is negative and shows signs of converging. To confirm another bullish candle, futures need to close above 40 DMA at 19.32 and then target the 10 DMA at 19.44. On the downside, the break below 18.83 could set the scene for lower prices towards the support of 100 DMA at 18.69. However, the market struggled below that level in recent sessions, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term, however, the futures need to break above the current resistance to confirm that.

Ldn 2nd Month Sugar Futures

Ldn sugar futures gained ground yesterday as buying pressure triggered a close on the front foot, but below the near term resistance of 520 at 518.70. The stochastics are falling, but the %K/%D is converging on the upside in the oversold, soon to show a buy signal, as the MACD diff is negative and converging on the upside. This suggests we could see a continuation of a bull trend in the near term, with prices edging towards 520, before testing the 10 and 40 DMAs at 528. On the downside, the candle found support at 512.90, and if the prices break through this level, we could see prices retreat back through the 100 DMA at 505.56 before 500. The resistance at 10 and 40 DMA seems robust, but the indicators point to growing bullish momentum in the near term.

NY 2nd Month Coffee Futures

NY coffee edged higher yesterday as intraday trading caused futures to close at 217.60. Stochastics are falling, but %K/%D is seen converging on the upside in the oversold. Likewise, the MACD diff is negative and diverging, but the momentum is slowing, highlighting a potential change in trend in the near term. To confirm another bullish candle, prices need to close above 221 and then target 40 DMA resistance at 223.75. On the downside, the rejection of prices above 220 could trigger losses back to 212.60 before targeting 209.65. Buying pressure was weak, and the candle formed an inside bar suggesting there might be a lack of appetite above the previous day’s highs. The indicators, however, are about to confirm a change of trend in the near term, but futures need to break above the near term resistance to confirm this.

Ldn 2nd Month Coffee Futures

Prices strengthened yesterday as protracted buying pressure triggered a close above the 2078 level; the market closed at 2089. The stochastics are rising, and %K/%D have converged on the upside, a clear buy signal, and the MACD diff is negative and converging. In order to confirm the outlook for higher prices, futures need to break above the current resistance at 10 DMA at 2085 and then 2104. Conversely, a break below the 2019 support line could set the scene for a test of 2000. The rising methods formation could be a sign that the bears lack an appetite for lower prices, but futures need to confirm this by edging higher in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 2567. The RSI is rising, while %K/%D is diverging out of the oversold. Likewise, the MACD diff is negative and converging, confirming waning selling pressures. On the upside, finding appetite above the trend resistance at 2563 could trigger gains through 2600 towards 40 DMA at 2605. On the downside, a break below the 2500 level could trigger losses back towards the 61.8% fib level at 02485. That level has been supporting futures prices, and a break below it would signal strong selling pressure. A longer candle body with short wicks signals that the buying pressure is growing, and the bullish outlook is on the horizon.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures skyrocketed in recent sessions, and yesterday, the protracted buying pressure triggered a close on the front foot above 1800 at 1809. The RSI is rising, while %K/%D are diverging on the upside after converging on the upside. The MACD diff is negative and converging, outlining the recent market rally. On the upside, a break above the 76.4% fib level at 1813 could trigger gains through resistance towards 1837. The market rally has been strong, with three white soldiers' formation confirming the strength of bull sentiment. On the downside, a break back below the 61.8% fib level at 1767 could trigger losses back towards 50 DMA at 1760 before 1750. We could see prices trend even higher today, confirmed by long candle bodies and low upper and lower wicks.

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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