NY 2nd Month Sugar Futures
NY sugar edged higher yesterday as intraday trading caused futures to test appetite above 10 DMA at 20.53, the market closed above at 20.73. Stochastics are rising, and %K/%D is diverging on the upside, suggesting further gains in the near term. The MACD diff is positive and diverging; however, the upside momentum is stalling, suggesting waning buying pressure. To maintain positive momentum, prices need to close above 2100 and then target 21.50. On the downside, the rejection of prices above 21.00 could trigger losses back to the 10 DMA before targeting 20.00. Buying pressure remains weak, and indicators point to a slowing appetite on the upside - the doji candle confirms market uncertainty. The reaffirmation of support above 10 DMA could strengthen the outlook of higher prices.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged higher yesterday, holding above the 10 DMA and closing at 595.60. The stochastics are positive and diverging, and the MACD diff is positive and diverging, outlining recent upside momentum. On the upside, futures need to break completely above 600, a robust resistance, in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 609.93; this could strengthen the trend on the upside in the long run. A break back below the current support at 10 DMA would bring into play the 580 level. We see prices edge higher in the near term, highlighted by recent bullish momentum and positive indicators; however, futures need to close above the current resistance of 600 to confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading struggled to break the support of 180, prompting a close at 183.50. The stochastics are falling, with %K entering the oversold, and the MACD diff is positive and diverging, suggesting lower prices in the near term. To confirm the outlook for lower prices, futures need to close back below the 40 DMA at 180.51 and then target 180. The 10 DMA is starting to close in and resisting prices on the upside. However, a break above that level could set the scene for 190. A narrow-bodied candle with short wicks points to market uncertainty about lower prices, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday after prices broke below the 2800 level, prompting a close at 2786. The stochastics are falling, with %K/%D diverging on the downside, and the MACD diff crossed into a negative, sending a sell signal. To confirm the bearish indicators and rejection of prices above 2800, futures need to take out support at 2750 and then target 2700. On the upside, futures need to close above 10 DMA and then test 2900 in order to confirm the outlook of higher prices towards 3000. We expect futures to weaken in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday, causing the market to close at 4225. The stochastics are flat, and the MACD diff is negative and flat d/d, suggesting a lack of appetite in either direction. To suggest the outlook for higher prices, futures need to close back above the 10 DMA and then target 4260, the recent high. On the downside, a break below 4200 could set the scene for 40 DMA at 4155 and then 4100. The narrow candle body with short wicks points to market uncertainty about the direction of the move, and the futures need to break out of current resistance/support to confirm the near-term outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading caused the market to close at 3432. The stochastics are rising, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the outlook for higher prices, futures need to close back above 40 DMA at 3458 and then target 3500. However, a break below 3400 could set the scene for lower prices in the near term. Repeated narrow-bodied candles point to the market struggling above the 40 DMA level while also being supported by 3400. However, with the indicators pointing higher, we could see marginal strength in the near term.
