NY 2nd Month Sugar Futures
NY sugar futures failed above 24.00 once again yesterday as prices closed at 1398. The stochastics are rising, with %K/%D strengthening further into the overbought territory. The MACD is positive and flattening out after recent downside momentum, suggesting selling pressures might be abating. The rejection of higher prices may prompt a break back towards the 10 DMA support at 23.25; a subsequent breach of this level could trigger losses towards 22.60. On the upside, a break of 24.00 and then 24.09 may prompt futures to test the highs of 24.15. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Long lower wick points to an appetite for higher prices; however, the future needs to break above the near-term resistance to confirm the outlook.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened lower yesterday, but support at 650 held firm, causing the market to close at 660.40. The stochastics are falling, with %K/%D edging out of the overbought territory, and the MACD diff is positive and converging, suggesting lower prices in the near term. To suggest the outlook of higher prices, futures need to close back above 10 DMA at 655.98 and then target 675 before 700. However, a break below support at 650 could set the scene for the 23.6% fib level at 641.41 and then 619. The bullish candle body with short wicks suggests a lack of appetite on the downside. However, at the same time, futures are capped by resistance at 700, and to confirm the change in momentum in the longer term, prices have to break above this level.
NY 2nd Month Coffee Futures
NY coffee futures consolidated yesterday, breaking above resistance at 200 and closing at 203.05, an October high. The stochastics are edging further in the overbought territory, and the MACD diff is positive and diverging, suggesting the futures still have more room to go. On the upside, futures need to break completely above 200 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 210.85; this could strengthen the trend in the long run on the upside. A break back below the current trend support at 195 would bring into play 10 DMA at 188.03, which could set the scene for support at 40 DMA at 181.34. We see prices edge higher in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures failed above the previous day’s highs once again yesterday as intraday trading caused them to close below at 2379. The stochastics are rising, with %K/%D seen diverging further in the overbought; the MACD diff is positive and converging, pointing to waning buying pressures. The rejection of prices at 2400 has formed a candle with a short body but a longer lower wick, confirming a lack of appetite for higher prices. If prices were to break back above that level, this could trigger a test of 2415 and then 2450. To suggest a bearish candle, futures need to take out support at 10 DMA at 2307 and then at 2300. A break below this level would confirm the outlook for lower prices.
NY 2nd Month Cocoa Futures
NY cocoa futures gained ground yesterday as protracted bullish sentiment saw futures break above the 2930 resistance level, and the futures closed at the 2965, 2016 high. The stochastics are rising, and the MACD diff is diverging on the upside once again, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 3000, which could set the scene for futures to take out the 3050 level. On the downside, the market needs to take out support at 10 DMA at 2896 and then support at 40 DMA at 2806. The 10 DMA level has been providing support for futures prices, and with a longer upper wick on Tuesday, confirming the appetite for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot above trend resistance at 2776. The stochastics are rising, with the %K/%D sending a buy signal once again, as the MACD diff is positive and diverging on the upside. This suggests we could see a continuation of a bull trend in the near term, with prices edging towards 2300, before testing the 2355 level. On the downside, the candle now found support at the trendline at 2045, and if the prices break through this level, we could see prices retreat back through the 2200 level. The three-white soldier formation is a bullish signal, but futures need to find support above 2300 in order to solidify the outlook on the upside.