NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday as intraday trading caused the market to close above the 10 and 100 DMAs at 23.66. The stochastics are rising, and the MACD diff just converged on the upside, a strong buy signal. The %K/%D is also rising; to confirm the outlook of higher prices, futures need to close back above the robust resistance at 24.00 before 24.09. The 10 DMA is now supporting prices from below at 23.16. If prices break below this level, it could trigger further losses to 22.60. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground yesterday as protracted buying pressure prompted a test of the 661.10 level to close on the front foot at 659.70. The stochastics are rising, and the %K/%D is seen diverging on the upside close to the overbought. The MACD is positive and diverging. To confirm another bullish candle, futures need to break above 661.10 completely and then target the 40 DMA at 673.66. On the downside, the break below 650 could set the scene for lower prices towards the support of 10 and 100 DMAs at 642. However, the market struggled below these levels in recent days, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term.
NY 2nd Month Coffee Futures
NY coffee softened yesterday as protracted selling pressure triggered a close on the back foot below 160 at 157.55. The stochastics highlight further downside, with the %K/%D converging on the downside in the oversold. However, the MACD diff is negative and converging. The indicators are painting a mixed picture, but to suggest another bearish candle, futures would need to break below the 155.80 level before 150. On the upside, resistance at 10 DMA at 160.76 has been solidifying, and an appetite above that level would strengthen the bullish momentum. This could also trigger gains towards 164.05. Long candle body along with a longer lower wick point to an increased appetite on the downside; however, the futures need to break completely below 155.80 to confirm the outlook for lower prices.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday as prices closed at 2570. The RSI is falling, but the %K/%D is now rising rapidly out of the oversold territory. Likewise, the MACD diff is negative and converging, suggesting a growing appetite for higher prices, but futures need to break above the 40 DMA level at 2615 to trigger the momentum. A break above this level towards 2675 and then 2700 would confirm the strong upside momentum. Conversely, appetite for prices below the 10 DMA at 2553 could trigger a test of support of 2489. A long-legged candle shows indecision about either direction; the length of the wicks also points to increased volatility during the day. The indicators point to a further rise in prices, but futures need to close above 40 DMA, the level they struggled to break above completely in the last couple of days.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw prices close above the trendline at 3332. The RSI is falling, and both %K/%D and the MACD diff are converging on the downside, outlining the upcoming sell trend. To confirm this, the futures need to break below the psychological trend support to trigger the momentum. A break below this level towards 3200 would confirm the strong bearish momentum. Conversely, appetite for prices above the 3350 could trigger a test of resistance of 3400. A gravestone doji candle shows rejection of higher prices and could point to a start of moderate bearish sentiment that the indicators point to. We anticipate prices on the back foot in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading saw futures close at 2604. The stochastics are falling, and the MACD diff converged on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, the market needs to take out support 2600 and the trend support at this level. On the upside, a break above the resistance at 2650 could set the scene for futures to take out the 2700 level. A doji candle signals uncertainty about the outlook for lower prices, and the futures need to take out the trendline to confirm the outlook for falling prices.