NY 2nd Month Sugar Futures
NY sugar futures increased marginally yesterday, as trading saw prices test above 20.00 but close at 20.01. The stochastics are seen diverging on the downside, with the %K/%D edging close out of overbought, and the MACD diff is positive and converging, suggesting growing selling pressures. Today’s candle opened above 20.00, but the upside momentum is not yet holding up, and futures softened to retest this level again. If the level was to hold, we could see further upside to 20.48 before 20.50. Alternatively, a break below the 10 DMA at 19.99 could trigger losses to 19.64 and 19.50, respectively. The spinning top formation has been formed, which points to market indecisiveness for further upside momentum, and today’s candle also points to growing bearish momentum in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures increased marginally yesterday, as intraday trading saw prices close above the support of 10 DMA at 568.40. The stochastics fluctuated in recent days, struggling to point out an outlook. Today’s moves however, point to growing softening momentum. The MACD diff also shows signs of softening. A break of the 10 DMA at 562.17 could trigger losses through 560, with the tertiary level at 553.20. On the upside, a break above 575.40 could set the scene for bullish momentum towards 580. However, this level was robust in recent weeks, and the spinning top formation has been formed, which points to market indecisiveness, and falling below the current support would confirm further bearish momentum.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as prices tested 100 DMA once again, but struggled above this level and closed at 173.70. Indicators continue to favour the downside; %K/%D is seen diverging out of overbought, suggesting softer buying pressures. A break below the 174.35 level would bring into play the recent support level at 40 DMA at 165.54; this would help suggest strong downside momentum in the longer term. Prices have been relatively supported by 100 DMA resistance at 175.57 at 10 DMA at 1386, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above the previous day’s highs at 1414 and then target 1420 in the near term, a firm resistance level. A break above that resistance level would confirm the outlook for higher prices.
Ldn 2nd Month Coffee Futures
Prices weakened yesterday, as moderate selling pressure triggered a close at 2032. Stochastics are falling; the %K/%D have exited the overbought territory, signalling a potential trend change. The MACD is positive and is about to converge on the downside, which would create a strong sell signal. Prices tested 2062, however, a close below and a long candle body support market indecisiveness above that level. This could trigger losses to 2000. On the upside, a break back above 10 DMA at 2044 could see the test of 2082. We expect prices to continue to weaken today and remain on the back foot in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday, as trading saw prices close at 2618. Stochastics are seen tailing off on the upside near oversold, and the MACD diff is negative and diverging, confirming further softening in the downside momentum before a possible trend shift. On the upside, a break above 10 DMA at 2630 could set the scene for bullish momentum towards 2671. Alternatively, a break of the 40 DMA level at 2607 could trigger losses through 2607. The spinning top formation following similar candles in recent days highlights uncertainty about prices out of the current range between the moving averages. We expect this momentum to continue in the near term.
Ldn 2nd Month Cocoa Futures
London prices weakened yesterday, as moderate selling pressure triggered a test of support at 2000 again; the market closed at 2001. Stochastics are softening on the downside, signalling a continuation of the trend. The MACD is positive and converging, and a shorter candle body with a long wick on the downside supports the market testing below 2000. In order to confirm the negative momentum, prices need to break below the current support and then target 50 DMA at 1978. Conversely, support at 2000 could hold and set the scene for a test of 2015 again. We expect prices to weaken today and remain on the back foot.