NY 2nd Month Sugar Futures
NY sugar strengthened yesterday as moderate buying pressure triggered a close on the front foot at 26.96. The stochastics are showing signs of convergence, suggesting abating downside pressures. The MACD diff is negative and converging. A long bullish candle body with longer wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 10 DMA at 27.01, but prices struggled above that level for the last couple of sessions. This would confirm the trend for rising prices up to the 27.25 level. On the downside, a breach of support at 26.00 would strengthen the bearish momentum. This could also trigger losses towards the 40 DMA at 25.61. Indicators point to higher prices, but with prices failing above the resistance, futures are capped on the upside.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged higher yesterday but were struggling to break above resistance at 10 DMA and closing at 713.50. The stochastics are falling, but the %K/%D’s downside is slowing in the oversold, and the MACD diff is negative and diverging. This suggests that we might see some moderate downside momentum before a trend reversal in the near term. The reaffirmation of support at 40 DMA at 701.69 could set the scene for higher prices back to test the 10 DMA level at 721.08. On the downside, futures need to break below the support of 40 DMA in order to suggest downside momentum. We do not expect that to happen in the near term, and we could see futures edge back up to 10 DMA in the near term.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday after futures tested 147.20 once again to close at 148.35. Stochastics are falling, and %K/%D is diverging on the downside further into the oversold, confirming negative momentum. The MACD diff is negative and diverging, highlighting recent selling pressure. To confirm the bearish indicators and rejection of prices above 150, futures need to take out support at 147.20 and then target 145. On the upside, futures need to close below 40 and 10 DMAs at 154 and then target 160 in order to confirm the outlook for higher prices. The weakness prevailed in the last couple of days; however, the indicators point to this momentum being oversold.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading caused the market to close at 2372. Futures broke below the 2400 support level earlier this week, but support at 2342 has formed, and futures have struggled below it. The stochastics are seen converging in the oversold, and the MACD diff is negative and converging, highlighting waning downside pressures. To suggest further bearish momentum, futures need to break below the near-term support before targeting 2300. On the upside, to confirm the outlook of higher prices, futures need to close back above 2400 and then target 40 and 10 DMA levels once again at 2460. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and yesterday’s candle points to growing appetite on the upside, although that momentum is most likely to be marginal in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher yesterday as the trend support held firm. The futures, however, were capped at the 3483 resistance level, causing prices to close at 3464. The stochastics continue to fall, but %K/%D are seen converging on the upside out of the oversold area, and the MACD diff is negative and is showing signs of convergence, suggesting waning weakness in the near term. This could cause the futures to test the 40 DMA at 3532, but before this, the near-term resistance at 3483 must be broken first. On the downside, the 3420 level stands firm for now, but if the futures gain enough conviction to break below these levels, this could trigger a test of 3400. The indicators indicate waning downside momentum in the near term, but the inside candle formation suggests further weakness on the upside in the near term. To confirm the indicators’ moves, the resistance at 3483 must be broken above first.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher yesterday as support at 2900 held firm once again. The futures, however, were capped at the DMA resistance level at 10 DMA at 2957, causing the prices to close at 2933. The stochastics continue to fall; however, the downside momentum is seen slowing. The %K/%D is converging on the upside once again, and the MACD diff is negative but slowing. This could cause futures to test the 3000 level once again, but before this, the near-term resistance at 10 DMA must be broken first. On the downside, 2900 stands firm, and if the futures gain enough conviction to break below this level, this could trigger a test of 40 DMA at 2856. The indicators indicate a change of momentum in the near term, but the inside candle formation on Thursday suggests that futures will struggle to break higher in the near term.