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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 strengthened on Friday as buying pressure triggered a close on the front foot at 19.26. The stochastics are rising out of the oversold, with %K/%D seen diverging on the upside. The MACD diff is negative and converging. A bullish candle with a longer lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 40 DMA at 19.31, the level prices failed above on Friday. This would confirm the trend for rising prices, up to 19.50. On the downside, a breach of support at 100 DMA at 18.68 would strengthen the bearish momentum. This could also trigger losses towards the 18.50. Indicators are pointing to growing buying momentum, and if futures break above the 40 DMA resistance, we would expect to gain positive momentum in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures rallied on Friday as buying pressure triggered a close on the front foot at 521.90. The stochastics are rising out of the oversold, as the MACD diff is negative and converging, signalling growing buying pressures. This suggests we could see higher prices in the near term towards the resistance of 530.20, but the market needs to take out immediate resistance at 40 DMA at 527.88 beforehand. On the downside, support around 512.90 has been robust in the last couple of days, and if this level does not hold firm, we could see prices retreat back through the 100 DMA at 506.08 before 500. Long candle body points to an appetite for higher prices; however, prices need to take out current resistance to confirm the outlook.

NY 2nd Month Coffee Futures

NY coffee futures weakened on Friday after breaking support of 215. The market closed at 210.45. The stochastics continue to soften further into the oversold territory, and the MACD diff is negative and diverging, highlighting Friday’s move. The support at 210 has been robust in the past, and if this level is broken, this would bring into play the 38.2% fib level at 207.85 before 200. On the upside, futures need to gain back above 10 DMA at 217.95 in order to confirm upside momentum and the double bottom formation. The reaffirmation of support here could trigger gains towards the level at 40 DMA at 222.42; this could strengthen the trend in the long run on the upside. Longer candle body points to protracted selling pressure, and to confirm further downside momentum, prices need to break below the current support level.

Ldn 2nd Month Coffee Futures

Ldn coffee futures sold off on Friday after investors rejected prices above 2137, prompting a close below 40 and 10 DMAs at 2113 and 2093, respectively, at 2083. The stochastics are falling, with RSIs in neutral territory; the %K/%D converged on the downside and is now diverging, suggesting for near-term negative trend. The MACD diff is positive and converging, indicating improving sentiment on the downside. To confirm the bearish candle, prices need to break below the support level at 2078 before the 2019 level. Tertiary support stands at 2000. On the upside, to regain upside conviction, futures need to close back above 2137 and then 100 DMA at 2188 in the near term. Near term momentum is on the downside, the close below two shorter-term DMA confirms this trend.

NY 2nd Month Cocoa Futures

NY cocoa futures softened on Friday after testing the support level of 2500. The market closed lower at 2492. The stochastics are falling, with %K/%D just diverging on the downside towards the oversold, and the MACD diff is negative and diverging. On the downside, futures need to break below the support of 2500 completely in order to confirm the bearish trend. However, this level has been robust in the last couple of months. Alternatively, the appetite back above 10 DMA at 2546 could set the scene for higher prices back to test the 40 DMA level at 2594, confirming the hammer formation. Indeed, the trend support level has been robust in the last couple of months, but indicators point to further downside momentum. A break below this level would suggest strong conviction on the downside in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures softened on Friday after breaching support of 1800. The market closed at 1787. The stochastics are falling; the %K/%D has recently converged on the downside, and the MACD diff is positive and converging. The recent selling pressure suggests that we could see lower prices in the near term through the support of the 61.8% fib level at 1767. A break below this level would bring into play the DMA levels at around 1760 level, which could set the scene for trend support at 1750. On the upside, futures need to gain back above 1800 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 1837; this could strengthen the trend in the long run on the upside. The long lower wick points to an increased appetite on the downside, and we could see prices edge lower 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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