NY 2nd Month Sugar Futures
NY sugar futures edged higher yesterday, but prices failed above the 10 DMA and closed at 20.28. The stochastics are on the rise once again, with %K/%D about to converge on the upside, and the MACD diff is negative and converging, suggesting we could see a change in momentum in the near term. On the downside, futures need to break below the support of 20.00 in order to confirm the outlook of lower prices. This could trigger further losses towards 19.64 and then 19.50. Conversely, the reaffirmation of support at 40 DMA at 19.97 could set the scene for higher prices back to 20.48. The 10 and 40 DMAs are closing in, creating a narrow trading range. The positive indicators point out that we could see a break above 10 DMA in the near term, and that would confirm the bullish momentum.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened higher yesterday, but the resistance of 575.40 held firm, causing futures to close at 574.70. The stochastics are seen falling on the downside, but the %K/%D is now showing signs of convergence near the oversold, and the MACD diff is negative and converging marginally. A break of the 575.40 level could trigger gains through 580, with the tertiary level at 580.70, the recent high. On the downside, a break below the current support level could set the scene for downside momentum towards 40 DMA at 561.07. The indicators point to a reversal of momentum on the upside; however, futures struggled to break the resistance of 575.40 in the near term.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading saw prices close at 180.30. The RSI is rising, and %K/%D is diverging on the upside, a strong indication of near-term upside. The MACD diff is negative and converging, suggesting some appetite for higher prices, but futures need to break above 180, a firm resistance, to trigger the momentum. A break above this level towards 190 would confirm the strong bullish momentum. Conversely, appetite for prices below the moving averages at 177 could trigger a test of support of 170. A gravestone doji candle shows rejection of higher prices and highlights that resistance at 180 is standing firm. We anticipate prices on the front foot in the near term but struggle above this level.
Ldn 2nd Month Coffee Futures
Ldn coffee futures jumped higher yesterday, breaching resistance at 10 DMA and closing at 2130. The indicators suggest that we could see higher prices in the near term. The stochastics continue to diverge on the upside, and the MACD diff is negative and converging. On the upside, a break above 2130 could then test the resistance level at 2200. Superseding this level, resistance stands at 2213. On the downside, if futures fall back below the 40 DMA at 2093, then we could see further weakness below 2050. The narrow DMA support/resistance provided a small trading range, however, yesterday’s trading break out of these levels could trigger a strong momentum on the upside in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot at 2780. The stochastics are rising with the %K/%D diverging close to the overbought area, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards 2800, but the market needs to take out immediate trend resistance of 2780. On the downside, the candle found support at 2750, and if the prices break through this level, we could see prices retreat back through the 10 DMA at 2704 before 2700. The three-white soldier formation is a bullish signal, but futures need to take out the trend resistance in order to confirm the outlook on the upside.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures jumped higher yesterday, breaching resistance at 2100 and closing at 2113. The indicators suggest that we could see higher prices in the near term. The stochastics continue to diverge on the upside, and the MACD diff is negative and converging. On the upside, a break above the 2120 level could then test the resistance level at 2150. Superseding this level, resistance stands at 2200. On the downside, if the futures fall back below 2100, then we could see futures break below the 50 DMA at 2056. Yesterday’s upside could trigger further gains in the near term, and moving averages provide robust support at current levels.