NY 2nd Month Sugar Futures
NY sugar futures rallied yesterday, but the futures struggled to break above the robust resistance level of 26.00. The prices settled at 25.97. The RSI is rising, while %K/%D is diverging on the upside once again, further into the overbought. The MACD diff is positive and diverging, outlining recent market growth. On the downside, a break back below the support level of 10 at 24.22 could trigger losses back towards 24.00, a break below which would confirm the outlook of lower prices in the longer term. On the upside, a break above 26.00, a robust psychological level, could trigger gains through the trend resistance above 26.00. We could see prices trend even higher today, but trend resistance needs to be broken for this to be the case.
Ldn 2nd Month Sugar Futures
Ldn sugar futures jumped higher yesterday, but resistance at 700 caused the futures to close at 692.50. The stochastics are gaining ground back to the overbought territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through near-term resistance. To confirm further upside momentum, futures need to gain back above 700. The appetite above that level could trigger gains towards the 710.55 level; this could strengthen the trend in the long run on the upside. On the downside, a break below 10 DMA at 669.51 would bring into play the 650 level, which could set the scene for 641.42. Longer upper wick points to an increased appetite for higher prices. We expect futures to gain footing in the near term, but the near-term resistance needs to be broken first.
NY 2nd Month Coffee Futures
NY coffee futures softened yesterday as traders rejected prices above 10 DMA, prompting a close at 194.38. The RSI is falling, with %K/%D diverging on the downside closer to the oversold territory. The MACD diff is positive and converging, but the short candle body suggests there is a lack of strong appetite for lower levels. A break of support at the 40 DMA at 181.85 could trigger losses to the support level of 100 DMA. If this level holds firm, we could see prices trend higher back towards 194.15 in the near term. If prices find support above 10 DMA at 194.38, this could prompt a challenge of the 200 in the medium term. The 10 DMA is capping prices on the upside, and with robust selling pressures from the indicators, we expect prices to retreat in the near term.
Ldn 2nd Month Coffee Futures
Prices weakened yesterday as selling pressure triggered a close at 2419. The MACD diff is positive and flat. The stochastics are falling out of the overbought sharply, a strong selling pressure. The RSI is also falling, but the inside day yesterday suggests a continuation of the recent marginal upside momentum. A break below the support of 10 DMA at 2381 could point to further downside momentum, but recent support at 2400 seems robust, and if this level holds, prices could break above 2485 and then 2500. Conversely, a fall below the recent support could trigger losses to 2300. The indicators point to further downside momentum, but the inside candle shows a pause before a trend change.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower yesterday, but support at 2930 caused the market to close at 2928. 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 3000 and then target 3015. However, a complete break below support at 10 DMA at 2937 could set the scene for 2900. The longer candle body with longer lower wicks points to building momentum on the downside, and futures need to break out below the current support to confirm the near-term outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened yesterday, breaking below the trend support level, causing the market to close at 2226. The stochastics continue to fall, with %K/%D declining further 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 lower prices, futures need to close back below 2200 and then target the 50 DMA at 2142 before 2100. However, a break back above 2286 could set the scene for 2300. The long candle body with short upper and lower wicks suggests a stronger downside conviction yesterday, and we expect futures to weaken in the near term.