NY 2nd Month Sugar Futures
NY sugar strengthened yesterday as protracted buying pressure triggered a close on the front foot above 27.5 at 27.72. The stochastics remain overbought, with %K/%D fluctuating between convergence/divergence. The MACD diff is positive and converging, suggesting that the recent upside momentum is still not enough to sway the indicators’ momentum. A longer bullish candle body with a long shadow suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 28.00. This would confirm the trend for rising prices, up to the 29.00 level and then 29.01. On the downside, a breach of support at 27.25 would strengthen the bearish momentum. This could also trigger losses towards the 10 DMA at 27.10. Indicators point to lower prices, and we expect futures to struggle above 28.00 in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 736 once again. This level held firm, and the future closed at 735.80. The stochastics are falling out of the overbought, and the MACD diff is converging on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the 10 DMA at 726.99, which could set the scene for futures to take out the 700 level. On the upside, the market needs to take out resistance at 736 and then 750. The 10 DMA level is supporting futures from the downside, and with a longer upper wick on Tuesday, confirming the appetite for higher prices despite the indicators suggesting otherwise.
NY 2nd Month Coffee Futures
NY coffee futures gained ground yesterday as buying pressure prompted a test of 164.05. The market closed at 160.95. The stochastics are strengthening into the overbought, and the MACD diff is positive and diverging, suggesting continued bullish momentum in the near term. The prices have been supported above the 160 level in the last couple of sessions. The fall below this level could trigger losses through 155.80 and the 10 DMA at 155.04. On the upside, a breach above 164.05 would bring into play the firm resistance of 100 DMA at 167.15, confirming an inverse hammer formation. Futures need to take out the resistance at 170 in order to confirm the trend. The indicators and Friday’s candle formation point to an appetite for further gains, but futures need to take out the near-term resistance at 164.05 in the near term to confirm this.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened marginally yesterday as intraday trading saw futures test appetite at the 100 DMA level. This level held firm, and the future closed at 2540. The stochastics are tailing off, with %K/%D converging on the downside near 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 the support at 100 DMA at 2534, which could set the scene for futures to take out 2500. On the upside, the market needs to take out resistance at 2600 and then 2675. The 100 DMA level continues to support the futures from the downside; however, seen flattening, and with a longer upper wick on Tuesday, we could see the bears’ strength grow in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday after the previous day’s losses, testing the resistance of 10 DMA. The market closed lower at 3640. The stochastics are falling, with %K/%D just diverging on the downside, with %K/%D leaving the overbought, and the MACD diff converging on the downside, signalling strong selling pressures. On the downside, futures need to break below the support of 3600 in order to confirm the continuation of the bearish trend. Indeed, the support level has been robust in the last couple of days, a break below this level would suggest strong conviction on the downside. Alternatively, the reaffirmation of support at this level could set the scene for higher prices back to test the 10 DMA level at 3670 once again, confirming an inverse hammer formation.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at 3000. This level held firm, and the future closed at 2989. The stochastics are falling, and the MACD diff converged on the downside, signalling growing selling pressures. To suggest the outlook for higher prices, futures need to break above the resistance at 3000, which could set the scene for futures to take out the 10 DMA at the 3030 level. On the downside, the market needs to take out the trend support and then support at 40 DMA at 2811. With a longer upper wick on Thursday, we expect futures to remain elevated historically in the near term.
