NY 2nd Month Sugar Futures
NY sugar futures edged higher yesterday, but resistance at 20.71 once again capped prices on the upside, urging them to settle at 20.39. Stochastics have converged on the upside, a strong buy signal, and the MACD diff is negative and converging, suggesting growing upside momentum in the near term. To confirm this, futures would first need to break above 20.71 before targeting the 20.94 level. This would also mark the highs not seen since the summer of 2021. If, however, resistance at the current level holds firm, this could trigger losses back below the 10 DMA at 20.27 to test the 40 DMA at 20.06. We expect futures to remain elevated but struggle above 20.71 in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar softened slightly yesterday, following Wednesday’s break out of the resistance level of 580. Resistance at 592 held firm, and yesterday’s candle struggled above it, closing at 583. The stochastics are diverging on the upside, and the MACD is positive and diverging, highlighting the recent buying pressures. The next robust resistance level stands at the trend level, currently at 600. To confirm another bearish candle, futures need to break below the moving average levels of 10 and 40 DMA at 573.93 and 563.30, respectively. Futures have followed prices higher since the start of the year, and we expect further marginal upside in the near term as it follows the longer-term trend. The moving averages should also provide robust support for prices in the near term.
NY 2nd Month Coffee Futures
NY coffee futures continued to be supported by the 174.35 level, and while yesterday’s prices closed below this level, a 173.45, the candle struggled to breach it completely. The stochastics have converged on the downside and are now edging towards the oversold, a strong sell signal. The MACD diff is negative and has once again begun to diverge on the downside. We expect futures to remain supported above 174.35, but shorter-term moving averages at 178 are also capping any upside gains, so the trading has been range-bound between these levels. To confirm the indicators, futures need to break below the robust support before targeting the 100 DMA at 169.62. Alternatively, a break above the moving averages at 178 could trigger further gains to 180 and 190, subsequently. We expect to see more marginal downside in the near term.
Ldn 2nd Month Coffee Futures
London coffee futures held their nerve yesterday, as the candle closed marginally higher on the day at 2124. The stochastics are rapidly diverging on the upside, as the MACD diff is negative and converging, suggesting growing upside momentum in the near term. To confirm this, futures need to break above the 2131 level and then gain further footing to 2150. On the downside, the moving averages are standing firm at 2100, and a breach below these levels could set the scene for lower prices down to 2082. The indicators suggest growing upside momentum, and the moving averages are providing robust support for prices. We expect a marginal upside in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures edged marginally higher yesterday after five consecutive days of gains, closing at 2822. The %K/%D is diverging on the upside, now overbought, as the MACD diff is positive and diverging, highlighting the recent upside pressures. We expect futures to struggle above 2856 in the near term but attempt to test this level. If this level is rejected, this could form the double top formation and send prices back to 10 and 40 DMA at 2722 and 2709, respectively. We expect marginal momentum in the near term as futures edge closer to the 2856 level, but prices should struggle above this resistance.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened yesterday after prices confirmed the previous day’s resistance at 2135, closing at 2116. The stochastics show no signs of slowing down, edging closer to the overbought area. Likewise, the MACD diff is negative and about to converge on the upside, which would indicate a robust buy signal. The volumes, however, remain below the longer-term average, suggesting that there is a lack of conviction for higher levels. If the support at 2100 holds firm, futures could then retest the recent resistance level of 2055. Alternatively, a break back below this level could trigger losses through the trend support to 50 DMA at 2061 and 100 DMA at 2014. We expect prices to remain above 2100 but lack the conviction to suggest a growing upside trend.