NY 2nd Month Sugar Futures
NY sugar futures sold off yesterday after investors rejected prices above 26.00, prompting a close below the shorter-term DMA support levels at 24.97. The stochastics are falling after having converged on the downside out of the overbought, with RSIs now in neutral territory, suggesting a strong short-term negative trend. The MACD diff is positive and converging, indicating improving sentiment on the downside. To confirm another bearish candle, prices need to break below the support level at 25.00 completely before 24.09. On the upside, to regain upside conviction, futures need to close back above 26.00 and then 26.37 in the near term. Near-term momentum is on the downside, and a break below the moving averages completely would confirm this trend.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gapped lower, breaking below the 10 and 40 DMA support levels as the prices continued to struggle above the 700 level; the futures closed at 676.40. The indicators point to further softness in the near term, with MACD diff about to converge on the downside and now declining and the %K/%D weakening away from the overbought after flipping on the downside, a strong selling pressure. Yesterday’s decline still managed to hold about the robust support at 661.10, and if this level is breached in the near term. We could see protracted selling pressure down to 650. Yesterday’s long candle body with little shadow highlights the growing appetite on the downside, and this is confirmed by higher volumes. We expect further downside in the near term.
NY 2nd Month Coffee Futures
NY coffee futures weakened yesterday as futures failed into the resistance at 171.85 and closed at 170.25. 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 170 would confirm the outlook for lower prices and the three black crows’ formation, a clear bearish sentiment. This may pave the way for lower prices to 165, with the tertiary level at 160. Conversely, the reaffirmation of support above the current level would suggest higher prices and a close above the moving averages at 180, setting the scene for higher prices towards 190. Yesterday’s candle body suggests an appetite for lower prices, and the indicators are pointing to a further fall in prices in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw futures test appetite at 10 DMA. This level held firm, and the future closed at 2749. The stochastics are falling out of the overbought, and the MACD diff is positive and converging, signalling waning buying pressures. To confirm the outlook for lower prices, a break above the support at 10 DMA at 2729 could set the scene for futures to take out the 2675 level before targeting 2600. On the upside, the market needs to take out resistance at 2790 and then 2800. A narrow candle body with a longer lower wick signals uncertainty about the outlook for lower prices.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at 3200 once again. This level held firm, and the future closed at 3210. The stochastics are falling, with %K/%D converging on the downside and trading out of the overbought, and the MACD diff is positive and converging on the downside, signalling a lack of certainty about higher prices. This is confirmed by diminishing volumes, as market is seeing an appetite for the upside wane. To confirm the outlook for lower prices, futures need to break below the support at 10 DMA at 3198, which could set the scene for futures to take out the trend support at 3110. On the upside, the market needs to take out the resistance of 3250 and then resistance at 3271, the recent high. If the futures break below the current support, we could see prices edge lower in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures failed above 2500 once again yesterday as intraday trading caused them to close at 2482. The stochastics are falling, with %K/%D converging on the downside; the MACD diff is positive and converging, suggesting lower prices in the near term. The rejection of prices at 2500 once again 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 above this level, this could trigger a test of 2517. To confirm another bearish candle, futures need to take out 2470 and then 2400. A break below this level would confirm the outlook for lower prices.