NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday, causing the market to close at 27.07. The stochastics are falling, with %K/%D diverging on the downside in the overbought, but the momentum is seen softening again. The MACD diff is positive and converging, suggesting marginally lower prices in the near term. To suggest the outlook of higher prices, futures need to close back above 27.21 and then target 28.00. The 10 DMA is closing in and supporting prices from the downside at 26.35. However, a break below that level could set the scene for 26.00 and 25.40, the recent lows. The longer candle body with a longer shadow points to growing momentum out of the current range. Growing volumes highlight that narrative. With the indicators struggling to leave the overbought, we expect to see a breakout of the current range on the upside in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 735.50 once again, closing below at 730.60. The stochastics are seen converging on the upside once again, about to cross into the overbought once more. The MACD diff is positive and diverging after recent weakness, signalling growing buying pressures. On the downside, futures need to break below the support at 10 DMA at 717.67, which could set the scene for futures to take out the 700 level. On the upside, the market needs to take out resistance of 735.50 to confirm the indicators’ outlook. Yesterday’s candle formed with longer upper and lower wicks, signalling appetite for prices out of the current range. If the futures break above the current resistance, we could see prices edge higher, and indicators point to a continuation of the longer-term trend on the upside.
NY 2nd Month Coffee Futures
NY coffee futures failed above the 10 DMA once again, causing them to close at 152. The stochastics are rising, with %K/%D seen converging on the upside; the MACD diff is positive and diverging, pointing to a support level forming at current levels. At the same time, the rejection of prices above the 10 DMA at 152.54 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 back above that level, this could trigger a test of 155.80 and then 40 DMA at 156.41. To confirm another bearish candle, futures need to take out support at 150 and then 147.20. A break below this level would confirm the outlook for lower prices.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened yesterday after finding resistance at the 10 DMA level. The market closed at 2430. The stochastics are losing momentum, edging towards the oversold territory, and the MACD diff is positive but flat, suggesting we could see marginally lower prices in the near term. A break below 2400 would bring into play the 2370 level. On the upside, futures need to gain back above the 10 DMA at 2545 in order to confirm upside momentum. The appetite above that level could trigger gains towards the level at 40 DMA at 2478; this could strengthen the trend in the long run on the upside. The hanging man formation, where there was some weakness during the day, points to an end of the uptrend; however, and the short candle body highlights to the market the uncertainty about the change of trend. We expect futures to edge slightly lower in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday, causing the market to close at 3649. The stochastics are falling, with %K/%D converging on the downside, and the MACD diff is positive and converging, suggesting lower prices in the near term. To confirm the outlook of lower prices, futures need to close back below the 10 DMA at 3634 and then target 3600. The 10 DMA is closing in and supporting prices on the upside. However, a break above 3678 could set the scene for 3700. The narrow candle body with short wicks points to a lack of appetite out of the current, but the futures need to break out of current support to confirm the indicators’ outlook.
Ldn 2nd Month Cocoa Futures
Prices weakened yesterday as moderate selling pressure triggered a close below the 3050 resistance level; the market closed at 3039. The stochastics are falling, with the %K/%D converging on the downside in the overbought, signalling a potential change in trend. The MACD is positive and converging, but the doji candle formation suggests market indecisiveness about growing downside momentum. The bearish short-bodied candles point to market uncertainty; however, prices have found lower lows in the last couple of sessions. In order to confirm the negative momentum, prices need to break below the current support at the trendline and then 3000. Conversely, support at the trendline could set the scene for a test of 3050. We expect prices to weaken today and remain on the back foot.
