NY 2nd Month Sugar Futures
NY sugar futures weakened yesterday as futures failed into the resistance at 40 DMA and closed at 25.74. The stochastics continue to fall as they emerge from overbought. The MACD diff is positive and converging, pointing to a waning buying pressure. This is further confirmed by low volumes for the contract, suggesting a lack of appetite in either direction. A break below 100 DMA 25.12 would confirm the outlook for lower prices and a change of trend on the downside, a clear bearish sentiment. This may pave the way for lower prices to 25.00. Conversely, the reaffirmation of support above 10 DMA at 25.99 would suggest higher prices and a close above 100 DMA, setting the scene for higher prices towards 27.00. Yesterday’s candle remaining within the range suggests a waning appetite for prices outside of these levels in the near term,
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened yesterday after investors rejected prices above 750, prompting a close below at 728.50. The stochastics are falling, with %K/%D falling out of the overbought, suggesting a short-term negative trend. The MACD diff is positive and converging, indicating improving sentiment on the downside. Still, the longer-term trend on the upside persists, and to regain upside conviction, futures need to close back above 10 DMA at 731.13 and then 740 in the near term. On the downside, prices need to break below the support level at 40 DMA before the 700 level. Tertiary support stands at 100 DMA at 692.10; a break below would confirm the outlook on the downside. Near-term momentum is on the downside, so we expect some moderate softness before reversal on the upside again.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as intraday trading caused futures to close at 160.90. The stochastics are converging on the downside, with %K/%D still in the overbought territory, sending a strong sell signal. The MACD is positive and converging, pointing to a waning buying pressure. The rejection of prices above 165 has formed a candle with longer wicks on either side, suggesting a lack of appetite for lower prices, however, a lack of conviction to break higher. If prices were to break below 10 DMA at 160.54, this could trigger a test of 155.80 and then 40 DMA at 153.96. On the upside, futures need to take out 165 and then robust resistance at 170. Indicators point to further selling pressure today, but the 10 DMA has crossed above the 100 DMA level, a golden cross formation, and we expect futures to struggle below these levels in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures weakened yesterday as they closed at 2420. The stochastics continue to fall as they are about to converge on the downside. The MACD diff is positive and converging, pointing to a growing selling pressure. A break below 40 and 10 DMAs at 2400 would confirm the outlook for lower prices and the three black crows formation, a clear bearish sentiment. This may pave the way for lower prices to 2342, with the tertiary level at 2300. Conversely, the reaffirmation of support above the 100 DMA resistance at 2495 would suggest higher prices and a close above 2518, setting the scene for higher prices. Long lower wick suggests uncertainty for appetite for lower prices, and with a golden cross formation, we could see a slowdown in downside pressures in the near term.
NY 2nd Month Cocoa Futures
NY cocoa edged higher yesterday as a strong upside candle caused futures to settle at 3844, marking new highs. Stochastics are rising after %K/%D converged on the upside in the overbought territory, suggesting a continuation of the upside trend in the near term. The MACD diff is positive and flat. To maintain positive momentum, prices need to maintain above the 3800 level and then target 3850. On the downside, the rejection of prices above these levels could trigger losses back to 10 DMA at 3703 and 3600, respectively. Buying pressure was robust yesterday, and the indicators point to a continuation of the bullish momentum.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher yesterday, breaking above resistance at 3296 and closing at 3345. The stochastics are rising, with %K/%D just converging on the upside, and the MACD diff is positive and diverging, sending a buy signal. The reaffirmation of support at 3300 could set the scene for higher prices to test the 3400 level. On the downside, futures need to break below the support of 3300 in order to end the recent sessions’ bull trend. Indeed, the 10, 40 and 100 DMAs are providing robust support levels. The market needs to gain a footing higher in the immediate term to improve the outlook on the upside.