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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 yesterday as moderate buying pressure triggered a close at 17.84. The RSI is rising, and %K/%D is seen converging on the upside in the oversold. Likewise, the MACD diff is negative and converging, suggesting we could see selling pressures wane in the near term. On the upside, yesterday’s candle struggled above the 18.00 level, and if this resistance is broken above, we could see prices edge higher to 10 DMA at 18.41 before 40 DMA at 18.74. On the downside, support at 17.50 has held firm in recent sessions, and a break below this level would signal a strong selling pressure to 17.00. Longer upper wick signals that while the selling pressure is waning, the near-term resistance at 18.00 needs to be broken first to confirm this momentum in the near term.

Ldn 2nd Month Sugar Futures

London futures gained ground yesterday as protracted buying pressure prompted a test of the 500 resistance level before closing slightly lower at 499.10. The stochastics are about to converge on the upside, with %K/%D seen in the oversold, and the MACD diff is negative and converging, suggesting waning selling pressures and a buy signal on the horizon. To confirm another bullish candle, the futures need to break above the 500 level first before targeting 10 DMA 510.88 and 520. On the downside, the break below 491 could set the scene for lower prices to 480 and 47.80 in the near term. However, the market has been well supported above the near-term support level in recent sessions, and a strong upside candle suggests a growing appetite for the upside. To confirm the conviction of this trend, the futures must break above 500 first.

NY 2nd Month Coffee Futures

NY coffee futures opened higher on the day but struggled to gain a footing above 217.35 and closed lower at 214.60. The stochastics continue to edge higher, with %K/%D strengthening further into the overbought, and MACD diff is positive and diverging, suggesting the positive trend that we have seen in recent days still has further upside. Indeed, on the downside, the support level at 10 DMA at 210.54 has held firm and could set the prices to test the 40 and 100 DMA levels at 221. If these levels are broken above, we could see further upside 230. However, if the 10 DMA support does not hold, futures could see weakness grow to test the 202.30 level before 200. The hanging man formation suggests that while there was weakness during the day, the buyers still have an appetite for higher prices in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee edged higher yesterday, but a lack of conviction above the 40 DMA level triggered a close at 2014. The stochastics remain elevated and are seen diverging on the upside once again into the overbought. The MACD diff is positive and diverging. A break back below 2010 could trigger losses through 10 DMA at 1982; the tertiary support stands at 1952. On the upside, if the futures were to break above the 40 DMA level at 2028, this could set the scene for higher prices to 2040 and 100 DMA at 2070. The spinning top formation points out the market’s indecisiveness as it trades between the 10 and 40 DMA levels. If the 40 DMA level holds firm, we could see the futures trade range bound in the near term.

NY 2nd Month Cocoa Futures

NY cocoa futures weakened yesterday as moderate selling pressure triggered a close below 10 DMA at 2364. The stochastics have converged on the downside, sending a strong sell signal, and the MACD diff is positive and converging, suggesting we could see growing downside impetus. To confirm this, the futures need to break the 10 DMA level at 2379 completely before targeting 2333 and 2317. Conversely, a break above 40 DMA at 2399 could trigger gains through 2420 to 2500. The stochastics point to growing selling pressure, and if the futures break the support of 10 DMA completely, we could see this momentum accelerate in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa sold off yesterday after investors rejected prices above 1800, prompting a close below 100 DMA at 1764 at 1757. The stochastics are falling, with %K/%D diverging out of the overbought, suggesting growing downside momentum. The MACD is positive and converging. To confirm another bearish candle and create a three black crows’ formation, prices need to break below the support levels of 50 and 200 DMAs at 1750 before it can target the trend support level at 1715. On the upside, to regain upside conviction, futures need to close back above 1800 and then 1830 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.

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