NY 2nd Month Sugar Futures
NY sugar futures continued to break lower following the recent sell-off. However, the momentum is seen slowing as the prices found support at 21.70 yesterday and closed at 21.74. The stochastics remain oversold but are now seen converging on the upside, about to show a strong buy signal. The MACD diff is negative and diverging, although the pace of the decline is seen as stalling. The candle formed a longer lower wick, a hammer formation, and could be a sign of a trend reversal in the near term. If this materialises, the levels could break back above 22.00 before the 10 DMA at 23.42. On the downside, if the current support level at 21.70 is broken below, the next level of support stands at 21.00. We expect the recent downside momentum to slow in the near term and find support at current levels.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened lower yesterday, but support 600 prompted futures to gain marginal momentum to close at 621.20. The stochastics are rising, with %K/%D diverging on the upside out of the oversold, and the MACD diff is negative and converging. The appetite back below 609.93 could set the scene for lower prices to test the 600 level, the recent lows. On the upside, futures need to break above the near-term resistance of 628.10 in order to confirm the upside trend, confirming the hammer formation. If futures struggle above 600 once again today, we could see upside momentum grow in the near term.
NY 2nd Month Coffee Futures
NY coffee futures gained marginal ground yesterday as buying pressure triggered a close on the front foot at 185.25. The stochastics are rising, as the %K just crossed above the %D – a strong buy signal, signalling a buy trend in the near term. The MACD diff is positive and diverging. This suggests we could see higher prices in the near term towards 190, but the market needs to take out immediate resistance at 188.50 beforehand, confirming the ascending triangle. On the downside, trend support is robust, and if this level does not hold firm, we could see prices retreat back through the 10 DMA at 180.41 before 171.85. Long lower wick points to the appetite for higher prices, however, futures need to take out 188.50 in order to confirm the outlook on the upside.
Ldn 2nd Month Coffee Futures
Ldn coffee futures surged yesterday but struggled to break above the trend resistance completely, closing at 2724. The stochastics are rising, with %K/%D just converging on the upside in the overbought territory, and the MACD diff is positive and diverging, sending a buy signal. The reaffirmation of support at 2600 could set the scene for higher prices back to test the 2730 – the June high. This would create the formation of the three white soldiers and the outlook for higher prices. On the downside, futures need to break below the support of 2600 in order to end the recent sessions’ bull trend. Then, the 10, 40, and 100 DMAs provide robust support levels. The market needs to gain a footing above the 2700 in the immediate term to confirm a further bullish outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at the 10 DMA once again. This level held firm, and the future closed at 4235. The stochastics are remaining flat, and the MACD diff is also unchanged, signalling uncertainty around price moves. To suggest the outlook for higher prices, futures need to break above the trend resistance at 4300, which could set the scene for futures to take out the 4310 level. On the downside, the market needs to take out support at 10 DMA at 4207 and then 4200 completely. Indicators point to little change in sentiment in recent days, and we expect trading to remain sideways today.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday, causing the market to close at 3547. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close back above 3580 and then target 3600. The 10 DMA is closing in and supporting prices on the downside. However, a break below that level could set the scene for the 40 DMA at 3411. The narrow candle body points to a lack of appetite for strong buying pressures, but the indicators point to further buying momentum in the near term.