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 12092022

NY sugar futures edged marginally higher on Friday as trading saw prices close at 17.83. The stochastics just entered the oversold territory, and the MACD diff is negative but does not clearly point to a change in direction as it remained flat day-on-day. A break of 17.62 could trigger losses through 17.48, with the tertiary level at 17.20. On the upside, a break above 10 DMA at 17.88 could set the scene for bullish momentum towards 40 DMA at 18.06. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 10 DMA but also below the near-term support, we could see further sideways momentum in the near term.

Tables 1 (210)

Ldn 2nd Month Sugar Futures

Ldn Sugar 12092022

Ldn sugar strengthened on Friday as protracted buying pressure triggered a close on the front foot at 539. The stochastics are rising, with %K/%D diverging on the upside into the overbought. The MACD diff is positive but has remained flat. A longer bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 540. This would confirm the trend for rising prices, up to 547.90. On the downside, a breach of support at 10 DMA at 531.88 would strengthen the bearish momentum. This could also trigger losses towards the 100 DMA at 526.97. Indicators point to higher prices, however, the futures need to break above the 540 level completely, the level the futures have not breached since July.

Tables 2 (209)

NY 2nd Month Coffee Futures

NY Coffee 1209222

NY coffee futures gained ground on Friday as buying pressure triggered a close on the front foot at 228.50. The stochastics are rising, with %K/%D converging on the upside, as the MACD diff is negative and converging, signalling a buy trend in the near term. This suggests we could see higher prices in the near term towards 240, but the market needs to take out immediate resistance at 10 DMA at 231.07 beforehand. On the downside, trend support around 223.44 is robust, and if this level does not hold firm, we could see prices retreat back through the 100 DMA at 220.93 before 40 DMA at 219.01. Long upper wick on Friday points to a lack of appetite for higher prices, however, futures need to take out 10 DMA in order to confirm the indicators’ outlook on the upside.

Tables 3 (209)

Ldn 2nd Month Coffee Futures

Ldn Coffee 12092022

Ldn coffee futures opened higher on Friday, but resistance at 2281 caused futures to close lower on the day at 2264. The stochastics are seen diverging on the upside, with the %K/%D now rising higher in the neutral territory, and the MACD diff is negative and converging. A break of the 10 DMA level at 2249 could trigger losses through 2215, with the tertiary level at 2200. On the upside, a break above 2281 completely could set the scene for bullish momentum towards 2300. The longer upper and lower wick on both sides point to market indecisiveness about higher prices, however, the indicators point to further upside momentum in the near term.

Tables 4 (210)

NY 2nd Month Cocoa Futures

NY Cocoa 1209222

NY cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at the moving averages. This level held firm, and the future closed at 2360. The stochastics are rising, with %K/%D converging on the upside, and the MACD diff is now seen converging on the upside, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance levels at 10 and 40 DMA at 2384, which could set the scene for futures to take out 2400. On the downside, the market needs to take out support at 2314 and then support at 2300. The candle with a longer upper wick on Friday suggests that the market still lacks the appetite for higher prices in the near term.

Tables 5 (208)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 12092022

Ldn cocoa futures gained ground on Friday as support at 1837 held firm urging the futures to close at 1854. The stochastics are falling, with the %K/%D falling out of the overbought, as the MACD diff is negative and diverging, suggesting growing downside momentum. This suggests we could see further declines in the near term. To confirm this, prices need to break below firm support at 1837. If the prices break through this level, we could see prices retreat back through 1800. On the upside, a break above 1884 and 1900 could signal further upside potential. The bullish candle with a long body and long upper and lower wicks points to the uncertainty of breaking out of the current support and resistance.

Tables 6 (209)

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 FX

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

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.

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. This week’s focus is on USDCNH and the currency's trajectory as Chinese economies continues to show weakness despite stimulus attempts from the government and the PBOC.

FX Monthly Report August 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the EUR and the pressure the ECB is under to continue tightening monetary policy as USD continues to strengthen against major currencies. Economic data is weakening and inflation remains a concern. 

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.