NY 2nd Month Sugar Futures
NY sugar strengthened marginally yesterday but struggled to break above 40 DMA once again, closing below at 26.20. The stochastics are rising, with %K/%D seen diverging on the upside close to the overbought once again. The MACD diff is positive and diverging, pointing to rising buying momentum. A bullish candle with a narrow candle body suggests a lack of strong appetite above the current levels. If futures break above the 40 DMA level at 26.22, this could set the scene for higher prices to the 27.00 resistance. This would confirm the trend for rising prices. Likewise, on the downside, a 10 DMA support at 25.82 has been formed, and a break below this level could trigger losses to trend support, currently at 25.10. If this level fails, then we would be looking for a start of a possible downtrend, down to 25.00 and below. The indicators are pointing to further price strengthening in the near term, but 40 DMA resistance has proven to be robust in recent days, and a doji candle points to a lack of appetite above these levels.
Ldn 2nd Month Sugar Futures
Ldn sugar edged higher yesterday as intraday trading caused futures to test appetite for prices above the 730 level; the market closed at 737.90. Stochastics are rising, and %K/%D is seen converging on the upside, confirming positive momentum. The MACD diff lacks conviction, pointing to market uncertainty. To maintain positive momentum, prices need to close above 740 and then target the recent high at 747.10. On the downside, the rejection of prices above 740 could trigger losses back to the shorter-term moving average levels at 725 and 717 before targeting the 700 level. Buying pressure remains weak; mixed indicators and the doji candle confirm market uncertainty. The break below the support of 10 DMA could confirm the outlook of weaker prices.
NY 2nd Month Coffee Futures
NY coffee prices gained ground once again yesterday, with a growing appetite for prices above 165, triggering a close at 167.10. The stochastics favour the upside, but %K/%D upward momentum is slowing in the overbought, suggesting we could see prices improve in the near term before a trend reversal. The MACD diff is positive and diverging, pointing to an improved outlook. Yesterday’s candle suggests we could see prices challenge 170 in the near term. In the medium term, futures need to hold above this level to suggest further upside. On the downside, a break below the 100 DMA support level at 159.62 could trigger losses back to the 10 DMA at 158.11. Three white soldiers' formation in the previous sessions confirms the outlook for higher prices, however, narrower candle bodies point to a softer appetite above the current resistance level. We anticipate prices to improve today as moderate buying pressure continues.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened yesterday as prices struggled to break above the 2520 resistance. The market closed at 2493. The %K/%D is converging on the downside in the overbought. The MACD diff is positive and converging, suggesting growing selling pressure. The indicators point to lower prices in the near term, and to confirm the rejection of the support, prices need to take out the 100 DMA at 2498 completely. A break below this level towards 2400 would confirm the double top formation and a subsequent bearish momentum. Conversely, appetite for prices above the current resistance level could trigger a test of 2600. A bearish candle after the three white soldiers' formation signals uncertainty about the outlook for higher prices, and the futures need to take out the 40 DMA to confirm the outlook for falling prices.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday, causing the market to close at 3764. The stochastics are flattening out, with %K/%D converging on the downside in the overbought, and the MACD diff is positive, but upside momentum is slowing, suggesting lower prices in the near term. To suggest the outlook of higher prices, futures need to close back above 3800 and then target 3815. The 10 DMA is closing in and supporting prices on the downside. However, a break below that level could set the scene for 3600. A longer candle body with a longer lower wick points to a weakening appetite on the upside, and futures need to hold below the current resistance to confirm the near-term downside outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday, causing the market to close at 3254. The stochastics are converging on the downside out of overbought, and the MACD diff is positive and converging, suggesting a change of trend in the near term. To suggest the outlook of higher prices, futures need to close above 3270 and then target 3300. However, a break below 10 DMA at 3132 could set the scene for 3100 and 3000, respectively. A narrow candle body with longer lower wicks points to a lack of appetite on the upside, and we might see futures reverse in the near term.