NY 2nd Month Sugar Futures
NY sugar futures softened yesterday but struggled, piercing the support level of 24.00. The market closed marginally higher at 24.03. The stochastics are falling, with %K/%D edging lower in the oversold territory, and the MACD diff is negative and diverging, paving the way for lower prices in the near term. An appetite above the 10 DMA at 25.38 could set the scene for higher prices to test the 100 DMA level at 25.53. On the downside, futures need to break below the support of 24.00 in order to confirm the bearish trend. The 10 DMA level has crossed below the 40 and 100 DMAs, a death cross, and with moving averages providing firm resistance, we expect the marginal downside to continue in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures softened marginally yesterday as futures tested appetite below 675, closing below it at 673. The stochastics are falling further into the oversold. The MACD diff is negative and diverging, signalling continued selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 670 completely, which could set the scene for futures to take out the 650. On the upside, the market needs to take out resistance at 700 and then the moving averages. The moving averages are creating a robust resistance for prices, and with a longer upper wick on Tuesday, we could see the bears’ strength grow in the near term.
NY 2nd Month Coffee Futures
NY coffee futures jumped higher once again yesterday as prices breached the 180 level to settle at 183.75, suggesting that support at 180 is solidifying. The indicators have fluctuated in recent days but once again seen strengthening to the overbought, suggesting a growing momentum on the upside; however, prices need to break above 185 to bring in the resistance level of 190, the high not seen since June. On the downside, futures need to break below the 10 DMA at 175.28 and then target a 40 DMA at 166.69 in the near term. We see further upside momentum in the near term, and the indicators suggest that the upside appetite might be growing.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday, causing the market to close above 2500 at 2553. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close back above 2600 and then target 2610. The 10 DMA is closing in and supporting prices at 2512. However, a break below that level could set the scene for 100 DMA at 2445 and 40 DMA at 2434. The narrow candle body with a long lower wick points to more appetite above the 2500 level, but the futures need to break out of the current resistance of 2550 completely to confirm the near-term outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures weakened yesterday and closed below the trend support at 4106. The stochastics continue to fall as they edge out of the overbought. The MACD diff is negative and diverging, pointing to a growing selling pressure. A break below 4100 would confirm the outlook for lower prices and the formation of the three black crows, a clear bearish sentiment. This may pave the way for lower prices to 4000, with the tertiary level at 40 DMA at 3910. Conversely, the reaffirmation of support above the 10 DMA at 4165 could suggest higher prices and a close back above the trend resistance, setting the scene for higher prices towards 4200. Long candle body with little shadow suggests appetite for lower prices. The indicators point to a further fall in prices in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened yesterday as futures failed into the resistance at 10 DMA and closed at 3427. The stochastics continue to fall as they emerge from overbought. The MACD diff is negative and diverging, pointing to a growing selling pressure. A break below 3400 would confirm the outlook for lower prices and the formation of the three black crows, a clear bearish sentiment. This may pave the way for lower prices to 40 DMA at 3353, with the tertiary level at 3300. Conversely, the reaffirmation of support above 10 DMA would suggest higher prices and a close above 3500. Yesterday’s candle body being below Monday’s suggests an appetite for lower prices, and the indicators are pointing to a further drop in prices in the near term.
