NY 2nd Month Sugar Futures
Sugar futures struggle for direction at the moment, yesterday prices were well supported to 18.66 but resistance at this level held firm, and the market closed at 18.51. The indicators give a mixed outlook, the RSI is rising as are the stochastics, but the gradient suggests weak momentum. The MACD diff lacks conviction. The long tails in recent sessions and this indicated indecision in the market. The close above the 10 DMA and 18.50 could indicate higher prices. However, the band of resistance above 18.50-19.00 could set the scene for lower prices. A breach of support at 18.17 would confirm the descending triangle and prompt a test of support at the 18.
Ldn 2nd Month Sugar Futures
Ldn sugar prices edged higher yesterday but failed to gain a footing above 530 prompting a close at 526.70. The RSI and stochastics are rising slowly and the long upside tails suggest that there is limited appetite for higher prices and this is capping momentum. Volumes are low and this price action is volatile. The rejection of resistance at 530 could set the scene to lower prices to 520 where prices have been supported. To regain upside conviction futures need to break above 230 and then 240. On the downside, a break through the 40 and 100DMAs. The MACD diff is converging on the upside and this could trigger higher prices in the near term but we need to gains accompanied by higher volumes.
NY 2nd Month Coffee Futures
NY coffee prices weakened yesterday as futures selling pressure continued, the market closed 158.70. The stochastics are falling, with the %K could set the scene for lower prices. The MACD diff is converging on the upside, and in conjunction with the gap between the stochastics rising this suggests further selling prices. The rejection of prices at the 40DMA reaffirmed the downside. Futures need to break below the recent low at 154 to confirm the outlook of lower prices, the repeated reaffirmation of resistance strengthens the trend on the downside, with the latest being the 51.8% fib level.
Ldn 2nd Month Coffee Futures
Ldn coffee futures consolidated yesterday as intraday trading caused futures to test resistance at 1880, and close at 1876. The stochastics are overbought, but the RSI is neutral. The MACD diff is positive but diverges suggesting lower prices. The longer term trend shows a bearish divergence on the stochastics which are now overbought but prices really struggle to gain upside momentum. Resistance at 1876 could set the scene for lower prices, the 40 DMA acts as resistance. The upside tails suggest rejection of lower prices. In the short term, the ascending triangle could prompt a break of 1876 triggering a break out to 1950. Prices have broken above near term resistance and if support is reaffirmed, the upside trend would be strengthened.
NY 2nd Month Cocoa Futures
NY cocoa prices surged higher yesterday, as protracted buying pressure prompted a test of resistance and close at 2542. The stochastics are rising towards overbought and the MACD diff is pushing higher and the divergence would suggest higher prices in the near term. Yesterday's gains and this morning's activity so far suggest the momentum is with the bulls and if futures can gain a footing above 2543 this could set the scene for a challenge of 2577 before 2600. The trend remains on the upside and we need to see the stochastics make a new high as prices break 2577 could set the scene for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa prices gained ground yesterday buying pressure prompted a breach of resistance at 1970 and a close at 1978. The stochastics are rising and a buy signal would strengthen upside momentum, the MACD diff are converging on the downside. Yesterday's upside trading and the strengthening momentum suggests higher prices in the near term, but futures need to break 2000 and then target 2020. On the downside, lack of appetite for higher prices could trigger losses through 50 DMA. The 50 DMA is trend support and a break of this level, would confirm the descending triangle.