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Authors
Daria Efanova

Daria Efanova Head of Research

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NY 2nd Month Sugar Futures

NY Sugar 05052023

NY sugar futures held their nerve yesterday as intraday trading caused the market to close at 25.19. The stochastics are falling, with %K/%D edging out of the overbought, and the MACD diff is negative and diverging, suggesting lower prices in the near term. The RSI is also rising; to confirm the outlook of higher prices, futures need to close back above 10 DMA at 25.42 and then target 25.80. On the downside, the rejection of prices around 24.80 could trigger losses back towards 24.09. A break below this level and a test of 40 DMA at 22.66 would confirm the trend on the downside. A longer candle body yesterday suggests growing upside momentum, but the 10 DMA needs to be broken first to confirm the upside momentum.

Tables 1 (300)

Ldn 2nd Month Sugar Futures

Ldn Sugar 05052023

Ldn sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 10 DMA. This level held firm, and the future closed at 686.50. The stochastics are falling, with %K/%D seen flattening out after falling out of the overbought, and the MACD diff is negative and diverging, signalling continued selling pressures. To suggest the outlook for higher prices, futures need to break above the resistance of 10 DMA at 685.09, which could set the scene for futures to take out the 700 level. On the downside, the market needs to take out support at 675 and then support at 650. The 10 DMA level is capping prices from the upside, and the indicators point to further downside momentum in the near term.

Tables 2 (299)

NY 2nd Month Coffee Futures

NY Coffee 05052023

NY coffee futures edged lower yesterday after futures tested 40 DMA once again to close at 1892.95. The stochastics are falling further into oversold, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the bearish indicators and rejection of prices above 10 DMA, futures need to take out support at 40 DMA at 182.76 and then target 180. On the upside, futures need to close above 10 DMA at 187.99 and then target 194.15 in order to confirm the outlook of higher prices towards 200. Long lower wick points to a lack of appetite below the 40 DMA; however, weakness prevailed during the day. Prices need to take out current support to confirm the outlook for lower prices. We expect futures to remain low in the near term back.

Tables 3 (298)

Ldn 2nd Month Coffee Futures

Ldn Coffee 05052023

Ldn coffee futures failed below 10 DMA yesterday as intraday trading caused futures to close at 2412. The stochastics weakened, with %K/%D diverging on the downside out of the overbought, and the MACD diff is negative and diverging, suggesting growing selling pressures. The rejection of prices at 10 DMA has formed a candle with a narrow body, suggesting a lack of appetite below these levels. If prices were to break above 2450, this could trigger a test of 2485 – the recent high. On the downside, futures need to take out 10 DMA at 2410 and then robust support at 2355. A break below this level would confirm the outlook for lower prices.

Tables 4 (300)

NY 2nd Month Cocoa Futures

NY Cocoa 05052023

NY cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot at 2904. The stochastics are rising with the %K/%D converging on the upside, as the MACD diff is negative and but the downside momentum is slowing. This suggests we could see a change of trend in the near term towards 10 DMA, but the market needs to take out immediate resistance of 2900. On the downside, the candle found support at 40 DMA 2854, and if the prices break through this level, we could see prices retreat back through 2800. However, the market was well supported above that level in recent weeks, and the bullish engulfing pattern suggests a strong buy signal. Firm support at that level suggests a lack of appetite below, and we expect prices to be firm in the near term.

Tables 5 (298)

Ldn 2nd Month Cocoa Futures

Ldn Cocoa 05052023

Ldn cocoa futures edged higher yesterday as intraday trading saw prices supported above 2170. The market closed at 2200. The RSI is rising, and %K/%D are oversold and converging. The MACD diff is negative and converging, suggesting waning selling pressure. The indicators point to a change in trend in the near term, and to confirm the confirmation of the support at 50 DMA, prices need to take out 2200. A break above this level towards 2250 would confirm the growing bullish momentum. Conversely, appetite for prices below the 150 DMA at 2155 could trigger a test of 2100. Two opposite long candles point to market uncertainty around price movement, and futures need to take out near-term support to set the scene for further bearish momentum.

Tables 6 (299)

 

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Disclaimer

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A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

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