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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 prices gained ground yesterday appetite for prices above 19.75, triggering a close at 20.08. The stochastics favour the upside, with the %K stochastic about to enter the overbought territory, suggesting we could see still prices improve in the near term before momentum reversal. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and yesterday’s candle suggests that while the buying pressure persisted, forming a three white soldiers formation, the longer upper wick could point to slowing momentum on the upside. If the futures are to continue higher in the near term, prices would need to challenge 20.38. In the medium term, futures need to hold above 20.50 and then the level at 20.94. On the downside, a break below the 19.75 support level could trigger losses back to 40 and 10 DMA at 19.36 and 19.10, respectively. We anticipate prices to improve today as buying pressure continues, albeit continues to moderate.

Ldn 2nd Month Sugar Futures

Ldn sugar futures gained pace above 2523 yesterday; however, prices struggled to break completely above 540 and closed at 540.20. The stochastics are rising, with %K/%D seen diverging on the upside near the overbought. The MACD is positive and diverging, suggesting further upside momentum. The rejection of higher prices may prompt a break back towards support at 40 DMA at 528.49, a subsequent breach of this level could trigger losses towards 520. On the upside, a complete break of 540 may prompt futures to test 547.90. Long upper and lower wicks point to a lack of appetite out of the current trading range, but with the 40 and 10 DMA on the rise, this could provide robust support levels for prices to break through. We expect the momentum to remain marginally higher.

NY 2nd Month Coffee Futures

NY coffee futures edged higher yesterday, breaking above trend resistance and closing at 227.20. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is positive and diverging. The reaffirmation of support at 40 DMA at 215.95 could set the scene for higher prices back to test the 100 DMA level at 230. On the downside, futures need to break below the support of 221 in order to end the recent sessions’ bull trend. A break above trend resistance highlights the appetite for higher prices, but the narrow candle body with extended wicks on both sides shows uncertainty about higher prices. Resistance at 100 DMA needs to be broken above to confirm further upside momentum.

Ldn 2nd Month Coffee Futures

London coffee futures increased marginally yesterday as moderate buying pressure saw prices close below 40 DMA at 2104. The stochastics have converged on the upside and are now rising. Likewise, the MACD diff just converged on the downside, a strong buy signal. On the upside, a complete break above 40 DMA at 2103 could set the scene for bullish momentum towards the recent highs of 2160. Alternatively, a break of the 2078 level could trigger losses through 2010, with the tertiary level at 2000. The spinning top formation has been formed, which points to market indecisiveness, however, a break below the current resistance would confirm further bullish momentum and the indicators.

NY 2nd Month Cocoa Futures

NY cocoa futures edged higher yesterday as trading saw prices close at 2530. The RSI is rising, and %K/%D converged on the upside and now rising. The MACD diff also just converged on the upside, suggesting an accelerated appetite for higher prices, but futures need to break above the 50% fib level at 2553 to trigger the momentum. A break above this level towards 40 DMA at 2579 would confirm the strong bullish momentum. Conversely, an appetite for prices below the 10 DMA at 2493 could trigger a test of support of 2439. A long-legged doji candle shows indecision about either direction; additionally, the 40 DMA has just crossed below the 100 DMA, which should further create downside momentum. We expect prices to edge slightly higher before hitting resistance at 40 DMA and retreating.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures opened higher yesterday, but resistance at 1813 caused futures to close lower on the day at 1799. The stochastics have just crossed on the upside and now rising, a strong buy signal, and the MACD diff is negative and converging. On the downside, a break of 1800 could trigger losses through 50 DMA at 1777, with the tertiary levels at 100 and 200 DMAs at 1765. On the upside, a break above 1813 could set the scene for bullish momentum towards 1837. The candle closing lower on the day could be a sign that futures found robust resistance at 1813, however, the indicators point to accelerating upside momentum. To confirm this, the robust level has to be taken out first.

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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