NY 2nd Month Sugar Futures
NY sugar futures edged higher yesterday as intraday trading saw prices supported above the 10 DMA. The market closed at 21.23. The %K/%D is positive and diverging, about to enter the overbought. The MACD diff is positive and diverging, but the upside momentum is stalling, suggesting waning buying pressure. The indicators point to higher prices in the near term, and to confirm the confirmation of the support, prices need to take out the resistance at 21.50. A break above this level towards 22.00 level would confirm the strong bulling momentum. Conversely, appetite for prices below the 10 DMA at 20.89 could trigger a test of 20.50; tertiary support stands at 20.00. Moderate bullish candles point to continued gains on the upside. However, the 21.50 resistance is robust, and futures need to take out this resistance to set the scene for further bullish momentum.
Ldn 2nd Month Sugar Futures
Ldn sugar strengthened yesterday as protracted buying pressure triggered a close on the front foot above 610 at 613.10. The stochastics are rising; %K/%D is converging on the upside in the overbought. The MACD diff is positive and diverging. A long bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 615 completely. This would confirm the trend for rising prices, up to 628.10. On the downside, a breach of support at 10 DMA at 600 would strengthen the bearish momentum. This could also trigger losses towards the 580 level. Indicators point to higher prices, and we expect futures to strengthen in the near term.
NY 2nd Month Coffee Futures
NY coffee futures held firm, trying to break; however, prices struggled above 10 and 40 DMAs and closed at 181. The stochastics are falling, with %K/%D seen converging on the upside in the oversold. The MACD is negative and converging, suggesting waning selling pressure. To confirm this, prices need to break above the shorter-term DMAs at 182. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. On the downside, the rejection of higher prices may prompt a breach of 180; a subsequent breach of this level could trigger losses towards 175. Longer upper and lower wicks point to a lack of appetite out of the current trading range; however, the future needs to break above 10 DMA support to confirm the outlook on the upside.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw prices struggle above 2970 and closed at 2938. %K and %D are rising towards the overbought, but the upside momentum is stalling. The MACD diff is negative and is starting to diverge marginally, suggesting some appetite for lower prices, but futures need to break below the 2900 level. A break below this level towards 10 DMA at 2862 would confirm the continued bearish momentum. Conversely, appetite for prices above the psychological 2970 could trigger a test of resistance of 3000. The candle struggled to break above the near-term resistance, and the gravestone doji candle is usually a sign of downside momentum. If futures can break below the 2900, that would confirm the indicators in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot at 4229. The stochastics are rising with the %K/%D diverging as the MACD diff converges on the upside. This suggests we could see higher prices in the near term towards 4300, but the market needs to take out immediate resistance of 4292, which is robust. On the downside, the candle found support at 4200, and if the prices break through this level, we could see prices retreat back through 40 and 10 DMAs at 4182. The three white soldier formation is a bullish signal, but futures need to take out the longer-term resistance at 4294 in order to confirm the outlook on the upside.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures consolidated yesterday as protracted buying pressure triggered a close on the front foot above 10 DMA at 3436. The stochastics are rising, with %K/%D diverging on the upside. The MACD diff is about to converge on the upside, which would confirm growing buying pressure; this could set the scene for higher prices to break above 40 at 3451. A break above this level would confirm the outlook of higher prices and confirm a three-white soldier pattern formation. On the downside, a break below the 3400 support level could strengthen the trend on the downside in the long run. The long body points to an increased appetite for higher prices ,and indicators confirm the outlook for more upside momentum in the near term.