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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 weakened on Friday as futures tested the support of 40 DMA and closed at 19.47. The stochastics continue to fall as they edge towards oversold. The MACD diff is negative and diverging, pointing to growing selling pressure. A break below 40 DMA at 19.50 would confirm the outlook for lower prices, paving the way for lower prices to 19.00 with the tertiary level at 100 DMA at 18.87. Conversely, the reaffirmation of support above 40 DMA would suggest higher prices and a close above 10 DMA at 19.74. Recent candles traded in between 10 and 40 DMA and struggling to break out of these levels. To confirm the downside momentum, the futures need to break below 19.50 today.

Ldn 2nd Month Sugar Futures

Ldn sugar futures held their nerve on Wednesday as intraday trading saw futures test appetite at 547.90. This level held firm, and the future closed at 552. The stochastics are falling, with %K/%D trading out of the oversold, and the MACD diff is converging on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 10 DMA at 546.35, which could set the scene for futures to take out the 40 DMA level at 532.16. On the upside, the market needs to take out resistance at 558, the recent highs, and then 560. The 10 DMA level is supporting the futures from the downside, but resistance at 558 seems robust, and we expect the futures to soften in the near term; the longer upper wick confirms it.

NY 2nd Month Coffee Futures

NY coffee futures weakened on Friday after breaking below the previous day’s close. The market closed lower at 232.55. The stochastics are about to converge on the downside in the overbought. Likewise, the MACD diff is positive and converging, pointing to a growing sell signal across the indicators. To confirm this, futures need to break below the support of 100 DMA at 229.38, down to 10 DMA at 226.13, which crossed above 40 DMA recently, a golden cross formation, which should provide robust support from the downside. Indeed, the 10 DMA support level has been robust in the last couple of sessions, a break below this level suggests growing conviction on the downside. On the upside, reaffirmation of support at 230 could set the scene for higher prices back to breach the 240 level up to 244.75, confirming an inverse hammer formation. The indicators confirm growing selling pressures, and a break of 10 DMA support suggests growing downside conviction in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures rallied on Wednesday as buying pressure triggered a close on the front foot at 2139. The stochastics are rising in the overbought, as the MACD diff is positive and diverging, signalling continued yet softer buying pressures. This suggests we could see higher prices in the near term towards the 2200 level, but the market needs to take out immediate trend resistance at 2141 beforehand, which is also a 100 DMA level. On the downside, support around 2104 is robust, and if this level does not hold firm, we could see prices retreat back through the 40 and 10 DMAs at 2086 before 2078. Long candle body points to an appetite for higher prices, but futures need to take out current resistance to confirm the outlook for higher prices.

NY 2nd Month Cocoa Futures

NY cocoa futures softened on Friday after finding support above 10 DMA. The market closed at 2505. The stochastics are showing signs of convergence on the downside, and the MACD diff is positive and converging. The recent selling pressure suggests appetite below the 10 DMA support at 2486, but the volumes point to a lack of conviction below this level. A break below this level would bring into play the 2436 level, which could set the scene for support at 2400. On the upside, futures need to gain back above 40 DMA at 2535 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the 100 DMA level at 2585; this could strengthen the trend in the long run on the upside. The long upper wick points to an increased appetite on the downside, and we could see prices edge lower in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures gained ground on Wednesday as buying pressure prompted a break of robust DMAs to close at 1794. The stochastics are increasing, and the MACD diff just converged on the upside, a strong buy signal. Prices have been testing the DMAs for the last week, suggesting appetite above that level. Trend resistance at these levels has been robust, and a break above that level could break the trend and set prices up to 1800 and 1813. On the downside, a breach back below the DMA levels would bring into play the recent firm support of 1730. The break of DMAs provides strong conviction for prices to edge higher 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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