NY 2nd Month Sugar Futures
NY sugar futures edged lower yesterday as prices failed above 26.50 and then closed below at 26.25. The indicators are starting to favour the downside; the stochastics are beginning to fall, with %K/%D converging on the downside and edging out of the overbought area, and the MACD diff is negative and converging on the downside, confirming growing selling pressures. A close below the shorter-term moving averages at 26.15 would bring into play the support at 26.00. On the upside, prices need to confirm support above the DMAs and September high at 27.00. Indicators point to a growing bearish momentum; however, prices have struggled to break below current support levels, and we expect futures to struggle below these levels in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday as prices closed at 743.90. The indicators are starting to favour the downside, with %K/%D converging in the overbought area, suggesting waning buying pressures. A break below the 10 DMA at 737.42 would bring into play the recent sessions’ support level at 40 DMA at 722.72. Prices have been relatively well supported above these levels, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 750 and then target 762.61 in the near term. The shooting star candle formation suggests that prices struggled above the robust resistance level. The break above the resistance level, however, would confirm the continuation of a long-term upside trend.
NY 2nd Month Coffee Futures
NY coffee futures struggled to break above the 171.85 resistance yesterday, and intraday trading saw prices close below at 169.50. The %K and %D are showing signs of convergence, as %K is tailing off into the overbought, which could signal a change of momentum to more bearish in the near term. The MACD diff is positive and flat, suggesting that upside momentum is waning. On the upside, a break above the 171.85 level towards 180 would confirm the stronger positive momentum. Conversely, appetite for prices below 164.05 could trigger a test of trend support of 160. A candle with a long lower shadow shows rejection of lower prices but also lacks conviction to break above the near-term resistance levels.
Ldn 2nd Month Coffee Futures
Ldn coffee futures weakened marginally yesterday after struggling to break above the previous day’s resistance level and closing at 2358. The stochastics have converged on the upside, a strong buy signal, and the MACD diff is positive and neutral, suggesting we could see a trend reversal on the upside in the near term. To confirm this, futures need to break above the resistance of shorter-term moving averages completely, up to 100 DMA at 2466. The 2342 support level has been robust in the last couple of sessions; a break below this level suggests growing conviction on the downside. The indicators confirm growing buying pressures and a break above 100 DMA support would suggest growing upside conviction in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures weakened yesterday as the prices struggled above the previous day’s resistance at 3970. The futures closed at 3905. The stochastics are converging on the downside once again, and the MACD diff is positive and converging, suggesting that the recent strength is waning, and we could see strong downside momentum in the near term. To confirm this, the futures need to break below the 10 level at 3870 before retesting the 3800 level. On the upside, if the support at the 10 DMA level holds, this could cause the futures to test new highs at 3980 and 4000, respectively. The indicators are pointing to growing downside pressures, but futures must first break below the 10 DMA to confirm the change of momentum in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading caused the market to close at 3338. The stochastics are falling, with %K/%D edging out of the overbought, and the MACD diff just converged on the downside, a strong sell signal. To confirm the outlook for lower prices, futures need to close back below 3296 and then target 3200. On the upside, the rejection of prices below 10 DMA could trigger gains back towards 3370. A break above this level would confirm the trend on the upside. Consistent narrow-bodied candles in recent sessions point to market uncertainty for higher prices, and the futures need to break out of current resistance to confirm the longer-term outlook.
