NY 2nd Month Sugar Futures
NY sugar futures rallied yesterday, reaching July highs, and managed to close above the previous resistance of 19.00 at 19.16. The stochastics are rising further into the overbought once again, with %K/%D diverging on the upside, and the MACD diff is positive and diverging, prompting further buying pressure. We expect futures to remain supported in the near term, with near-term support at 18.50 and a secondary level at 10 DMA at 18.19, which is set to strengthen further if buying pressure persists. On the upside, if futures gain into 19.50, then we could see a break back above 19.69. We expect futures to remain elevated in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures skyrocketed in recent sessions, and yesterday, the protracted buying pressure triggered a close on the front foot at 551.30, the highest level since September. The RSI is rising, while %K/%D are diverging on the upside, both are overbought. The MACD diff is positive and diverging, outlining the recent market rally. On the downside, a break back below the support level of 540 could trigger losses back towards 10 DMA at 523.65, break below this level would confirm the outlook of lower prices in the longer term. On the upside, a complete break above 550 could trigger gains through resistance towards 560. The market rally has been strong, with a long-bodied candle with little shadow after the spinning top formation. We could see prices trend even higher today as a result.
NY 2nd Month Coffee Futures
NY coffee futures weakened yesterday, testing support at the 160 level again. The market closed at 159.50. The stochastics are falling, with %K/%D converging back to the oversold territory, and the MACD diff is also positive and converging, pointing to a near-term decline in prices. The indicators outline the outlook for deteriorating prices, yesterday’s bearish engulfing candle suggests lower prices. Prices need to break below support at 160 before targeting 158.50. Conversely, if support at 160 can hold firm, this could trigger gains to break the resistance at 10 DMA at 167.17. A breach of this level would confirm the outlook for higher prices, with gains seen towards 180. We expect the momentum to remain on the back foot in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures weakened yesterday after investors rejected prices above 1827, prompting a close below at 1802. The stochastics are falling, with RSIs in the oversold territory; the %K/%D is also trading in the oversold territory, suggesting a short-term negative trend. The MACD diff is positive and converging, indicating improving sentiment on the downside. To confirm the recent weakness, prices need to break below the support level at 1800 before the 1790 level. Tertiary support stands at 1750, a break below would confirm the outlook on the downside. On the upside, to regain upside conviction, futures need to close back above 10 DMA at 1838 and then 1872 in the near term. Near-term momentum is on the downside, the indicators confirm this trend.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw prices close at 2498. The RSI is flat, meanwhile, %K and %D are falling out of the overbought. The MACD diff is positive and converging marginally, suggesting some appetite for lower prices, but futures need to break below the 2500 level completely. A break below this level towards 10 and 100 DMA at 2480 and 2470, respectively, would confirm the continued bearish momentum down to 2420. Conversely, appetite for prices above the 2540 level could trigger a test of resistance of 2577. The candle struggled to break below the near-term support, but the gravestone doji candle is usually a signal of downside momentum. If futures can break below 2450, that would confirm the indicators in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened marginally yesterday after testing the support level of 1950. The market closed higher at 1953. The stochastics are falling, with %K/%D diverging on the downside, out of the overbought. Likewise, the MACD diff is positive and converging, pointing to continued downside pressures in the near term. To confirm this, futures need to break below the support of 1950, down to 50 DMA at 1902. On the upside, appetite for prices back above 1970 could set the scene for higher prices back to breach 2000, confirming an inverse hammer formation. The indicators confirm continued selling pressures, and a break of near-term support would suggest growing downside conviction in the near term.