NY 2nd Month Sugar Futures
NY sugar futures edged higher yesterday as prices closed at 18.40. The indicators continue to favour the upside, with %K/%D diverging in the overbought and MACD diff is positive and diverging, highlighting recent buying pressures. In order to indicate a continuation in the improvement of market sentiment on the upside, futures need to gain a footing above 18.50 and then target 19.00 before July highs of 19.50. Alternatively, a break back below the 18.17 level would bring into play the recent support level at 100 DMA at 17.96. The hanging man candle formation suggests waning buying pressure, and we saw futures struggle above 18.50 in the last couple of sessions. However, a jump above this level today suggests we might see futures edge slightly higher.
Ldn 2nd Month Sugar Futures
Ldn sugar futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 520 at 530.40. The RSI is rising into the overbought, while %K/%D is breaking higher on the upside, edging further into the overbought. The MACD diff is positive and diverging, confirming rising buying pressures. On the downside, a break back below the support level of 520 could trigger losses back towards the 100 DMA at 515.72; a break below the 10 DMA at 513.71 would confirm the outlook of lower prices in the longer term. On the upside, a break above 540 could trigger gains through 560, the September highs. The long candle body points to more certainty in the bullish momentum and a break of 10 DMA level above 40 DMA, a golden cross, suggests further outlook on the upside.
NY 2nd Month Coffee Futures
NY coffee futures jumped higher yesterday as protracted buying pressure triggered a close on the front foot at 167.70. The stochastics are showing signs of convergence on the upside, and %K/%D just gave a buy signal as it converged on the upside out of the oversold. Likewise, the MACD diff just flipped on the upside, confirming a strong bullish signal; this could set the scene for higher prices to 180, but futures need to break above the 10 DMA at 168.92 completely first. A break above this level would confirm the outlook of higher prices up to 182.50. On the downside, a break below the support level at 160 level and an appetite for lower prices could set the scene for 150. Two-line strike formation, however, could point to a continuation of the recent trend on the downside. To confirm the indicators’ momentum, futures need to break back above the 10-day moving average in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading caused the market to close at 1827. The stochastics are rising out of the oversold, and the MACD diff just crossed on the upside, suggesting higher prices in the near term. The RSI is also rising, and to confirm the outlook of higher prices, futures need to close back above the 10 DMA at 1844 and then target 1872. On the downside, the rejection of prices around 10 DMA could trigger losses back towards 1800. A break below this level would confirm the trend on the downside. Two narrow-bodied candles with longer lower wicks in the last couple of sessions point to futures rejecting prices below the 180 level. But to confirm the outlook on the upside, the 10 DMA needs to be broken first.
NY 2nd Month Cocoa Futures
NY cocoa strengthened yesterday as protracted buying pressure triggered a close on the front foot above 2543 at 2555. The stochastics are rising, and %K/%D is diverging the upside in the overbought. The MACD diff is positive and diverging. A long bullish candle body with growing shadows suggests the upside momentum is slowing; this could set the scene for prices to test resistance at 2600 before settling at higher levels. However, if this level is breached, this would suggest a trend for further increases, up to 2700. On the downside, a breach of support at 2500 would strengthen the bearish momentum. This could also trigger losses towards the 100 DMA at 2470. Indicators point to higher prices, although being overbought suggests we could see that momentum stall.
Ldn 2nd Month Cocoa Futures
Lnd cocoa futures failed above the previous day’s highs yesterday as intraday trading caused it to close at 2032. The stochastics are seen tailing off, with %K/%D seen converging in the overbought; the MACD diff is positive and converging. The rejection of prices at 2050 has formed a candle with a long body and a longer lower wick, suggesting that prices struggled above that level but also below 2030. If prices were to break back above this level, this could trigger a test of 2068 and then 2100. To confirm another bearish candle, futures need to take out 2030 and then support at 2000. A break below this level would confirm the outlook for lower prices.