NY 2nd Month Sugar Futures
NY sugar futures edged lower yesterday as intraday trading caused futures to close at 24.61. The stochastics are diverging on the downside, with %K/%D in the oversold territory, and the MACD is negative and diverging, pointing to a waning buying pressure. The rejection of prices above 10 DMA at 25.12 has formed a candle with a long wick on the downside, suggesting an appetite for lower prices; however, lacking the conviction to break above the near-term support. If prices were to break below 24.15, this could trigger a test of 24.00. On the upside, futures need to take out 10 DMA and then robust resistance at 25.80. Indicators point to further selling pressure today, but the futures need to take out 24.15 in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened yesterday as futures failed into the resistance at 10 DMA and closed at 681.50. The stochastics continue to fall as they enter the oversold. The MACD diff is negative and diverging, pointing to growing selling pressure. A break below 40 DMA at 681.50 would confirm the outlook for lower prices and create a three black crows formation, a clear bearish sentiment. This may pave the way for lower prices to 662, with the tertiary level at 650. Conversely, the reaffirmation of support above these levels would suggest higher prices and a close above 10 DMA at 693.90, setting the scene for higher prices towards 700. Yesterday’s candle body being below the previous day’s trading suggests an appetite for lower prices, and the indicators are pointing to a further fall in prices in the near term.
NY 2nd Month Coffee Futures
NY coffee strengthened yesterday as protracted buying pressure triggered a close on the front foot at 180.25. The stochastics are seen rising, with %K/%D seen converging on the upside near the oversold. The MACD diff is negative and converging as well. A Longer bullish candle body with a longer upper wick suggests growing buying pressures; this could set the scene for higher prices to break back above the resistance at 10 DMA at 182.49. This would confirm the trend for rising prices, up to 40 DMA at 186.94. On the downside, a breach of support at 171.85 would strengthen the bearish momentum. This could also trigger losses towards the 170. Indicators point to higher prices, and with futures breaking above the 100 DMA resistance level, we expect to see prices edge higher today.
Ldn 2nd Month Coffee Futures
Ldn coffee futures consolidated yesterday, breaking above resistance at 10 DMA and closing at 2567. The stochastics are converging on the upside near the oversold territory, and the MACD diff is negative and converging on the upside, suggesting the futures still have more room to go on the upside. On the upside, futures need to break completely above 10 DMA at 2553. The reaffirmation of support here could trigger gains towards the level at 2600; this could strengthen the trend in the long run on the upside. A break back below the current support of 2489 would bring into play the 40 DMA at 2427. We see prices edge higher in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw prices close at 3022. The RSI is falling, and both %K/%D and the MACD diff are about to converge on the upside, outlining the upcoming buying momentum. To confirm this, the futures need to break above the trend levels of 3030 to trigger the momentum. A break below this level towards 3000 would confirm the strong bearish momentum. A gravestone doji candle shows rejection of higher prices above the trend level and could point to a continuation of the moderate bearish sentiment we have seen in the last couple of weeks. We anticipate prices on the back foot in the near term before the change of trend.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened marginally yesterday as moderate selling pressures saw futures test appetite at 2310. This level held firm, and the future closed at 2312. The stochastics have converged on the downside, and now the %K/%D is falling out of the overbought. Likewise, the MACD diff is positive and converging on the downside, signalling growing selling pressures. To suggest the outlook for higher prices, futures need to break above the trend resistance at 2330, which could set the scene for futures to take out 2350. On the downside, the market needs to take out support at 2300 and then support at 2286. The 2300 level continues to support the futures from the downside, and with a longer upper wick on Thursday, we could see the bears’ strength grow in the near term.