NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday as intraday trading saw prices close at 19.93. The RSI is flat, meanwhile, %K and %D are about to converge on the upside, a strong buy signal. The MACD diff is negative and converging marginally, suggesting some appetite for higher prices, but futures need to break above the trend resistance level completely before testing 20.00. A break above this level could trigger gains to recent highs of 20.48. Conversely, appetite for prices below the 19.64 level could trigger a test of support of 19.50 and 19.21, confirming a descending triangle formation. The candle struggled to break above the near-term resistance, and the gravestone doji candle is usually a signal of growing downside momentum. If futures can break below 19.64, that would confirm the downside momentum in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened higher yesterday, but the resistance of 10 DMA caused futures to close lower on the day at 552.10. The stochastics are seen converging on the upside, with the %K/%D now tailing off from recent declines, and the MACD diff is negative and converging. A break of the recent lows of 545 could trigger losses through 40 DMA at 543.17, with the tertiary level at 540. On the upside, a break above 10 DMA at 556.51 could set the scene for bullish momentum towards 560. The short candle body with a long wick on the upside suggests firm resistance at 10 DMA, and we expect prices to struggle below this level in the near term.
NY 2nd Month Coffee Futures
NY coffee futures gained ground once again yesterday, breaking above 180 resistance level completely to close at 189.85. The stochastics continue to rise, edging into overbought, as the MACD diff is positive and diverging on the upside. This suggests that the indicators point continuation of bullish momentum in the near term, and if prices break above 190, this could trigger further gains to the 200 level, the October high. On the downside, the candle now found support at the moving averages, and if the prices break through these levels, we could see prices retreat back through 180 and 175, respectively. The bullish candle with longer upper and lower wicks point to markets testing resistance and support levels but still settling higher on the day. We expect this momentum to continue in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee prices gained ground yesterday with the appetite for prices above 2100, triggering a close at 2133. The stochastics favour the upside, with the %K/%D is overbought and growing, suggesting we could see prices improve in the near term. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and yesterday’s three white soldiers’ formation suggests we could see prices challenge 2131 once again in the near term. In the medium term, futures need to hold above this level to target 2200. On the downside, a break back below the 2100 support level could trigger losses back to 10 DMA at 2071. Longer candle body and longer lower wick show that there is appetite for higher prices, and bulls took over the trading during the day. Futures struggled above 2131, and a break above this level would confirm more upside momentum.
NY 2nd Month Cocoa Futures
NY cocoa futures opened higher yesterday, but the resistance of 2800 caused futures to close lower on the day at 2782. The stochastics are seen rising, with the %K/%D diverging on the upside and now increasing in overbought, a robust signal that further upside momentum is on the horizon in the near term, and the MACD diff is positive and diverging. A break of the 2800 level could trigger gains through 2815. On the downside, a break back below the current levels could set the scene for bearish momentum towards 2700. The spinning top candle has been formed, which suggests uncertainty about higher prices in the near term. We expect prices to struggle above 2800.
Ldn 2nd Month Cocoa Futures
Prices weakened yesterday as moderate selling pressure triggered a close at 2118. The stochastics have converged on the downside and are now falling, with the %K/%D just converging on the downside in the overbought territory, signalling a potential change in trend. The MACD is positive and converging. The bearish narrowed-bodied candles point to a lack of market appetite, and prices have been trading in a narrow range bound by the support and resistance at 2100 and 2155, respectively; in order to confirm the negative momentum, prices need to break below the current support at 2100 and then trend support. Conversely, support at current levels could set the scene for a test of 2155 once again. We expect prices to weaken today and remain on the back foot.