NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday as intraday trading saw prices close at 25.20. The %K/%D is rising, and the MACD diff is negative and converging marginally, suggesting some appetite for higher prices, but futures need to break above the 76.4% fib level at 26.46. A break above this level towards 40 DMA at 25.94 would confirm the continued upside momentum. Conversely, appetite for prices below the 10 DMA at 25.23 could trigger a test of support of 25.00, which is the 100 DMA level. The candle struggled to break below the near-term support, but the gravestone doji candle is usually a signal of downside momentum. If futures can break above the 40 DMA level, that would confirm the indicators in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 40 DMA. This level held firm, and the future closed at 707.80. The stochastics are rising yet seen converging near the overbought, and the MACD diff is converging on the upside, signalling waning buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 40 DMA at 708.86, which could set the scene for futures to take out the 725 level. On the downside, the market needs to take out support at 10 DMA at 703.66 and then support at 700. The indicators point to continued bullish momentum, but the appetite for higher prices is stalling. A longer upper wick on Thursday confirms this momentum. We expect futures to edge marginally higher in the near term.
NY 2nd Month Coffee Futures
NY coffee edged higher yesterday as intraday trading caused futures to test appetite for prices above 150; the market closed above at 150. Stochastics are rising, with %K about to enter the overbought territory, confirming positive momentum. The MACD diff is positive and diverging, suggesting growing buying pressure. To maintain positive momentum, prices need to close above the 40 DMA at 151.94 and then target 155.80, which is the recent high. On the downside, the rejection of prices above these levels could trigger losses back to the 10 DMA at 148.64 before targeting 147.20 once again. Buying pressure is bu8ilding, and indicators point to additional highs. The reaffirmation of support above 40 DMA could strengthen the outlook of higher prices.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged higher yesterday after futures tested 2260 once again to close at 2255. The stochastics remain oversold but are seen converging on the upside, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the bullish indicators and rejection of prices below 2220, futures need to take out resistance at 10 DMA at 2283 and then target 2342. On the downside, futures need to close below 2200 in order to confirm the outlook of lower prices. Short wicks point to an appetite for higher prices; however, prices need to take out current resistance to confirm the outlook for higher prices. We expect futures to strengthen in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures strengthened marginally yesterday as moderate buying pressure triggered a close above 3483 at 3516. The %K/%D is diverging on the upside. The MACD diff is negative and is about to converge on the upside, which would send a strong buy signal. On the upside, appetite above the 40 DMA level at 3542 could trigger gains through 3600 towards the trendline resistance. On the downside, a break below the 10 DMA at 3465 could trigger losses back towards 3400. That level has been supporting futures prices, and a break below it would signal strong selling pressure. A break above the recent robust resistance signals that the buying pressure is growing, and the bullish outlook is on the horizon.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 3020. The %K/%D is diverging towards the overbought. Likewise, the MACD diff just converged on the upside, confirming growing buying pressures. On the upside, finding support above the 3000 level could trigger gains through the trendline towards 3100. On the downside, a break below the 10 DMA at 2966 level could trigger losses back towards 2935, which is a 40 DMA level. That level has been supporting futures prices, and a break below it would signal strong selling pressure. A longer candle body signals that the buying pressure is growing and the bullish outlook is on the horizon.