NY 2nd Month Sugar Futures
NY sugar futures edged lower yesterday as moderate selling pressure triggered a close at 18.34. The stochastics are rising out of the oversold, but the momentum is slow, especially given yesterday's and today's marginal weakness in the prices. The MACD diff is negative and converging. A complete break of the 10 DMA at 18.30 could trigger losses through 18.17, with the tertiary level at 100 DMA at 18.09. On the upside, a break above previous sessions' highs and the 40 DMA level at 18.62 could set the scene for a test of 19.00, pointing to a change of trend for more bullish momentum. Yesterday's bearish spinning top formation points to market indecisiveness about the outlook for higher prices, and we see the futures range bound by the moving averages in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday as prices failed above the previous day's highs and then closed below at 523. The indicators are continuing to favour the upside; the stochastics are rising, with %K/%D diverging on the upside out of the oversold slowly, and the MACD diff is negative and converging on the upside, suggesting further upside pressures. On the upside, prices need to find support above 10 DMA at 523.50 and the previous day's high at 532 before targeting 540 in the near term. A break below the 100 DMA at 519.15 would bring into play the support at 512.90. Indicators point to further bullish momentum; however, prices have struggled to break out of the DMAs' support/resistance, and a break out of these levels would set the scene for a trend change.
NY 2nd Month Coffee Futures
NY coffee opened above the previous day's close yesterday but still struggled to break back above the 150 level, causing the futures to close at 150.15. The RSI is falling marginally, while the %K/%D is about to converge on the upside in the oversold; this could create a strong upside signal. The MACD diff is negative and converging, confirming the continuation of buying momentum. To maintain that trend, prices need to close above 150 and the target 154.55 before retesting the moving average resistance levels. On the downside, the rejection of prices above the current levels could trigger losses back below 143 before targeting 140, which would mark a new low. Buying pressure yesterday struggled above the previous day's highs and yesterday's inside candle pointed to a lack of appetite above the near-term resistance. If momentum could hold above this level, we could see prices edge higher in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures rallied yesterday, but the futures struggled to break above the robust resistance level of 1882. The prices settled at 1881. The RSI is rising, while %K/%D are diverging on the upside into the overbought. The MACD diff is positive and diverging, outlining recent market growth. On the downside, a break back below the support level of 40 and 10 DMAs at 1849 and 1844, respectively, could trigger losses back towards 1800, a break below which would confirm the outlook of lower prices in the longer term. On the upside, a break above 1882, the level futures struggled above, could trigger gains through resistance towards 1900. We could see prices trend even higher today, but resistance at 1882 needs to be broken for this to be the case.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower yesterday as prices struggled above the 2671 level and closed at 2651. The indicators are still struggling to point out an outlook, with %K/%D flipping between gains and losses, while the MACD diff remains positive and flat day on day. The support at 10 DMA at 2620 and the longer-term uptrend suggests we could see prices continue to edge higher in the near term back up to 2700. Alternatively, to suggest the change of trend, the 10 DMA support alongside the 2600 level need to break. The spinning top formation points to the market's indecisiveness about the direction of price moves, as it cooled from recent highs but also struggled to point to an appetite for a change of trend in the near term.
Ldn 2nd Month Cocoa Futures
Lnd cocoa futures edged above the previous day's closing price, but the bullish momentum was not strong enough, and futures closed below the robust resistance of 2015 at 2000. The stochastics are about to converge on the upside whilst continuing to edge lower, and the MACD diff is positive and converging. The continued rejection of prices above 2015 has formed a candle with a narrow body but a long wick on the upside, suggesting a lack of appetite for higher prices as it lacked the conviction to break above the near-term resistance. If prices were to break above the 2015 level, this could trigger a test of 2050. To confirm the shooting start formation, futures need to take out 50 DMA at 1967 and then robust support at 1950. We expect futures to continue testing the upside in the near term.