NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday as moderate buying pressure prompted a close above the 10 DMA of 23.87 at 24.01. The stochastics are falling, and the %K/%D converged on the downside out of the overbought, highlighting growing selling pressures. The MACD diff is positive and converging. To suggest another bullish candle, futures need to close above the previous day’s high of 24.40, which is also the 40 DMA resistance level. On the downside, if the 40 DMA remains firm, the break below the current support level of 24.00 could set the scene towards the 100 DMA at 23.46, another robust support level. However, the market struggled below the level in recent sessions, and a break below is needed to confirm the bearish outlook in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar held the nerve yesterday as intraday trading caused futures to close below the 10 DMA at 660.50. RSI is falling marginally, and %K/%D is falling and diverging, confirming the continuation of a negative trend. The MACD diff is positive and converging. To confirm a full bullish candle, prices need to close above 10 DMA at 662.21 and then target 40 DMA at 668.94, which is also the last week’s highs. On the downside, the rejection of prices above 10 DMA could trigger losses back to the 100 DMA at 648.06. Buying pressure yesterday was weak, and indicators point to growing selling pressures. The doji candle confirms market uncertainty. The break of support at 660 could confirm the outlook for lower prices in the near term.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday but support at 155.80 held firm once again, causing the market to close at 156.30. The stochastics are converging on the downside once again, with %K/%D falling in the oversold, and the MACD diff is positive but lacked the conviction to break lower in recent days, still suggesting that we could see lower prices in the near term. To confirm the outlook of lower prices, futures need to close back below 155.80; the level prices struggled to break above and then target 150. The 10 DMA at 158.51 is closing in and supporting prices from the upside. However, a break above that level could set the scene for 164.05 and then 187. The narrow candle body with longer upper wick points to a heightened appetite for lower prices, and the futures need to break below the current support level of 155.80 to confirm the near-term outlook.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday after futures tested 10 DMA once again to close at 2532. Stochastics are painting a mixed picture, with %K/%D converging on the downside. The MACD diff, however, is negative and converging, suggesting waning selling pressure. This has been confirmed by futures trading sideways in recent days, suggesting a lack of appetite in either direction. To suggest growing upside pressures, futures need to take out resistance at 10 DMA at 2550 and then target the 40 DMA resistance at 2610. On the downside, futures need to close below 2518 – the recent support level, and then target 2489 in order to confirm the outlook of lower prices. The indicators suggest that prices should continue to see sideways in the near term.
NY 2nd Month Cocoa Futures
NY cocoa strengthened yesterday as protracted buying pressure triggered a close on the front foot at 3399 after it tested the 3400 level. The stochastics have converged on the upside once again and now edging towards the overbought, with %K/%D is seen diverging on the upside. The MACD diff is negative and converging. A bullish candle with a longer lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 3400. This would confirm the trend for rising prices, up to 3450. On the downside, a breach of support at 10 DMA at 3338 would strengthen the bearish momentum. This could also trigger losses towards the 3300. Indicators suggest growing upside pressures, and if futures break above the current resistance, we expect to gain positive momentum in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher yesterday as moderate upside momentum saw prices break above the 2500 resistance to close just above at 2514. The stochastics are converging on the upside while oversold, and the MACD diff is negative and converging, suggesting we could see a change in momentum in the near term. On the downside, futures need to break below the current support level and then 50 DMA at 2431 in order to confirm the outlook of lower prices. On the upside, the reaffirmation of support at this level could set the scene for higher prices back to 2600. Growing wick during yesterday’s trading suggests prices are testing new highs, and we could see prices continue to edge higher in the near term.