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 futures held their nerve yesterday as intraday trading saw prices close at 18.7. The RSI is flat, but %K/%D is rising out of the oversold, which could be a strong sell signal. The MACD diff is negative and converging, suggesting some appetite for higher prices, but futures need to break above 10 DMA at 18.51, a firm resistance, to trigger the momentum. A break above this level towards 18.83 would confirm the growing bullish momentum. Conversely, an appetite for prices below the 18.44 level could trigger a test of support at 18.17. A gravestone doji candle shows rejection of higher prices as futures struggle above that level; if the resistance is broken, we expect prices to strengthen in the near term.

Ldn 2nd Month Sugar Futures

Ldn sugar futures gained ground yesterday as buying pressure triggered a close on the front foot at 534.60. The stochastics are rising, with the %K/%D diverging on the upside, 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, and prices need to break above the 40 DMA level at 534.21 before testing the 540 level, the recent week’s highs. On the downside, the candle found support at 530.20, and if the prices break through this level, we could see futures retreat back through the 100 DMA at 522.20. The three white soldier formation is a bullish signal, but futures need to find support above 40 DMA in order to solidify the outlook on the upside.

NY 2nd Month Coffee Futures

NY coffee futures edged higher yesterday but struggled to break above resistance at 230 and closing at 230.10. The stochastics are rising, with %K/%D just converging on the upside, and the MACD diff is negative and converging, sending a buy signal. The reaffirmation of support at 10 DMA at 227.84 could set the scene for higher prices back to test the 240 level if 230 is broken. On the downside, futures need to break below the support of 10 DMA in order to end the recent sessions’ bull trend. Indeed, the 10, 40 and 100 DMAs are providing robust support levels. The market needs to gain a footing above 230 in the immediate term to improve the outlook.

Ldn 2nd Month Coffee Futures

Prices weakened yesterday as selling pressure triggered a close at 2033. The MACD diff is negative and flat. The stochastics are falling and fluctuating between convergence and divergence. The RSI is also falling, but the inside day yesterday suggests a continuation of the recent sideways trend, and the stochastics highlight this. A break below the trend support could point to further downside momentum, but recent support at 2010 seems robust, and if this level holds, prices could break above 2050 and then 10 DMA at 2063. Conversely, a fall below the recent support could trigger losses to 2000. The indicators point to uncertainty in momentum, and the inside candle shows a pause before a trend change.

NY 2nd Month Cocoa Futures

NY cocoa prices weakened yesterday as intraday trading, but prices were supported at the 2333 level, the market closed at 2340. The MACD diff is negative and diverging on the downside, suggesting we could see lower prices in the near term. The stochastics are falling towards oversold, and this has increased downside impetus. The market needs to take out support at the 2333 level and then 2317, this could trigger losses back towards the robust support level of 2300. On the upside, if prices find support above 10 DMA at 2411, the market could set the scene for higher prices to 40 DMA at 2461. We expect prices to retreat in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures sold off yesterday, but investors confirmed trend support as prices closed above it at 1713. The stochastics are falling, with RSIs in neutral territory; the %K/%D are diverging towards the oversold, suggesting a negative trend. The MACD diff is negative and diverging, indicating improving sentiment on the downside. To confirm another bearish candle and form the three black crows formation, prices need to break below the support level at 1710 before the 1700 level. Conversely, to regain upside conviction, futures need to close back above 1750 and then 1758 in the near term. Near-term momentum is on the downside; the close below the shorter-term DMA confirms this trend.

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 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.

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning. This week we focus on USDSGD and whether the SDG recent strength is sustainable given the deteriorating global outlook. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.