NY 2nd Month Sugar Futures
NY sugar futures softened marginally yesterday as intraday trading saw futures tested appetite at 26.00. This level held firm, and futures closed at 25.43. The stochastics are beginning to converge on the downside in the overbought. Likewise, the MACD diff is converging on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below robust support levels at the moving averages, which could set the scene for futures to take out the 24.00. On the upside, the market needs to take out the resistance at 26.00 and then 26.37. The 10 DMA at 24.81 level continues to support the futures on the downside; however, narrowing closer to prices, and with a longer upper wick on Thursday, we could see the bears’ strength grow in the near term.
Ldn 2nd Month Sugar Futures
Prices weakened yesterday as selling pressure triggered a close below the previous day’s closing price at 703.10. The MACD diff is positive and diverging, but the stochastics are converging in the overbought, suggesting waning upside pressures. The RSI is overbought, suggesting that we could see a change in trend in the near term. The recent week’s gains have been well bid, and in order to confirm the continuation of that trend, prices need to break 711.60 and then 715. Conversely, to confirm the previous shooting star candles and rejection of near-term resistance, the market needs to break below the moving averages before targeting 661.10. This would bring into play the trend support at 650.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday, causing the market to close at 154.50. The stochastics are seeing upside momentum stall, with %K/%D converging on the downside near the overbought, and the MACD diff is positive; however, it lacks conviction to point out an outlook on the upside. To suggest the outlook of higher prices, futures need to close back above 155.80, the level above which prices struggled above in recent weeks, and then target 160. The 10 DMA is closing in and supporting prices on the downside. However, a break below that level could set the scene for 150. A narrow candle body with longer wicks points to a lack of appetite in either direction in the near term; however, with the indicators’ upside slowing, we could see some marginal weakness testing the 10 DMA in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw futures test appetite at 100 DMA once again. This level held firm, and the future closed at 2489. The stochastics are beginning to fall, with %K/%D seen slowing near the overbought, and the MACD diff is positive, signalling waning buying pressures. To confirm the outlook for lower prices, futures need to break below the support at 2480, which could set the scene for futures to take out the 10 DMA support at 2417. On the upside, the market needs to take out resistance of 100 DMA at 2519 and then resistance at 2600. The candle found resistance at the longer-term moving averages yesterday, and a longer upper wick signals a lack of appetite for higher prices. With 40 DMA also breaking below the 100 DMA level, a death cross, the impetus for downside momentum is growing in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures opened above the previous day’s close; however, prices struggled above the trend resistance and closed on the back foot at 3638. The stochastics are seen converging on the downside, with %K/%D falling out of the overbought. The MACD is positive. The rejection of higher prices may prompt a break back towards support at 3600; a subsequent breach of this level could trigger losses towards the 10 DMA level at 3498. On the upside, a break of trend resistance at 3670 may prompt futures to test 3700. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Longer upper and lower wicks point to a lack of appetite out of the current trading range; however, the future needs to break below 10 DMA support to confirm the outlook on the downside.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 2950. The RSI is rising, while %K/%D is overbought; however, upside momentum is seen slowing. Likewise, the MACD diff is positive and diverging, confirming growing selling pressures. On the upside, an appetite above 3000 could trigger gains through the trend resistance at 3040. On the downside, a break below the trend support level could trigger losses back towards 2900. A break below it would signal strong selling pressure and the end of the recent uptrend. Longer upper wick signals that futures are testing for higher levels but lacked conviction to break above these levels. The near-term resistance levels could be retested in the near term.