NY 2nd Month Sugar Futures
NY sugar prices gained ground yesterday as appetite for prices at 18.25 prompted a close on the front foot at 18.60. The stochastics are rising but remain neutral, the MACD diff is converging on the downside and this could trigger gains in the near term as sentiment improves. Futures need to break above near term trend resistance to confirm the pennant. This would set the scene for a break of 19 with the recent high at 19.22. On the downside, rejection of pries above 18.50 would set the scene for a reversal of yesterday's activity. Downside momentum will strengthen if futures breach support at 18.17 and the moving averages around 18-18.10.
Ldn 2nd Month Sugar Futures
London sugar prices gained ground as prices were well supported at 520 and the market closed at 526.40. The stochastics lack conviction, but are starting to fall. The MACD diff is converging on the downside. The mixed outlook is indicative of the recent consolidation. To confirm the move on the downside, prices need to break 520, and then the support of 512-517. Volumes are low, and this reduces the conviction of the market. On the upside, near term trend resistance would set the scene for higher prices to 540 and then 552. The consolidation is set to continue today but a breakout is on the cards.
NY 2nd Month Coffee Futures
NY coffee prices consolidated the previous days gains tested the 40 DMA at 168.65, the market closed at 167.90. The stochastics have given a buy signal, as the MACD diff is rising and diverges on the upside. However, the lower trend channel provides resistance and futures need to break above this level and test 61.8% fib level at 175 and trend resistance. A breach of the 50% fib level and 180 in high volume would set the scene for higher prices to 190. Conversely, rejection of prices at 168 may prompt a reversal back towards 162, and a break of 155 would confirm the head and shoulders chart pattern.
Ldn 2nd Month Coffee Futures
Ldn coffee futures consolidated yesterday after prices failed to breach resistance at 1882. The stochastics are overbought but the indicators have given a sell signal and could trigger losses back through trend support. The MACD diff is positive and converging, highlighting the trend of a correction to the downside. Confirming the ascending triangle could set the scene for higher prices back to 1907 and then 1992. On the downside, rejection of the ascending triangle would trigger losses back to 1800. We expect the market to decline in the near term.
NY 2nd Month Cocoa Futures
Cocoa prices gained ground as buying pressure continues to dominate the market, prompting a close at 2541. The stochastics a hovering between 50 and 75 and lack conviction, the MACD diff lacks conviction. The trend in the near term is rising but trend resistance at 2567 and this could trigger losses back through trend support to 2450. The 40 DMA is about to break above the 200 DMA and this is traditionally bullish but prices need to break 2567 and 2600 in order to confirm the recent trend.
Ldn 2nd Month Cocoa Futures
Cocoa prices gained ground yesterday as appetite for prices prompted a test of 1950 and close at 1951. The stochastics are falling towards oversold and the MACD diff is diverging on the downside suggesting lower prices in the near term, the contract roll has prompted prices to open lower. The 100 DMA now acts as resistance as this could set the scene for lower prices towards 1850. On the upside, futures need to break above 100 DMA may set the scene for higher prices towards previous trend support.