NY 2nd Month Sugar Futures
NY sugar futures jumped higher yesterday after a close on Monday, as trading saw prices close above 21.50 at 21.88. The stochastics are seen diverging on the upside, with the %K/%D strengthening into the overbought, and the MACD diff is positive and diverging, suggesting further gains in the near term. A break of 22.00 could trigger gains through 40 DMA at 22.52, with the tertiary level at 23.00. On the downside, a break below the 10 DMA at 21.01 could set the scene for a trend reversal towards the recent low of 20.00. A strong candle body with a short downside wick suggests growing conviction on the upside, but the resistance of 22.00 needs to be breached first to confirm this trend.
Ldn 2nd Month Sugar Futures
Ldn sugar futures jumped higher yesterday, and a bullish appetite trading saw prices close above a robust resistance of 630 at 631. The stochastics are seen diverging on the upside, with the %K/%D still in the overbought, and the MACD diff is positive and diverging, suggesting continued buying pressures. A break of the 40 DMA at 639.87 could trigger gains through 650. On the downside, a breakback below 615 could set the scene for bearish momentum towards the 10 DMA at 607.30. The long candle body with short wicks points to increased appetite on the upside, but resistance at 40 DMA needs to be broken first to confirm the conviction of the momentum.
NY 2nd Month Coffee Futures
NY coffee futures edged higher yesterday, holding above the support at 180, the level it struggled to breach, and closing at 182.05. The stochastics are rising, and %K/%D converged on the upside while in the oversold, selling a strong buy signal. The MACD diff is negative and converging, confirming the positive momentum. The reaffirmation of support at 180 could set the scene for higher prices back to test the trend resistance level. On the downside, futures need to break below the support of 180, providing a robust support level. The market needs to gain a footing completely above the trend resistance in the immediate term to improve the outlook.
Ldn 2nd Month Coffee Futures
Ldn coffee futures skyrocketed yesterday as protracted buying pressure triggered a close on the front foot above 3000 at 3170. The %K/%D is diverging on the upside into the overbought. The MACD diff is positive and diverging, outlining recent market growth. On the downside, a break below the support level of 3000 could trigger losses back towards 2970, and a break below the 10 DMA level at 2914 would confirm the outlook of lower prices in the longer term. On the upside, a break above 3170 could trigger gains through 4000 – a new record high. The market rally has been strong, and a strong bullish candle could signal the continuation of bull sentiment. We could see prices trend even higher today, but support at 3000 needs to hold firm for this to be the case.
NY 2nd Month Cocoa Futures
NY cocoa strengthened yesterday as protracted buying pressure triggered a close on the front foot above a key resistance of 4304 at 4375. The stochastics are rising, and %K/%D is diverging on the upside into the overbought. The MACD diff converged on the upside, sending a strong buy signal. A long bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 4400 completely. This would confirm the trend for rising prices. On the downside, a breach of support at 4300 would strengthen the bearish momentum. This could also trigger losses towards the shorter-term DMAs. Indicators point to higher prices, and we expect futures to remain elevated in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa strengthened yesterday as protracted buying pressure triggered a close on the front foot at 3583. The stochastics are rising, with %K/%D diverging on the upside in the overbought. The MACD diff is positive and diverging. A long bullish candle body with little shadow suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 3570 completely. This would confirm the trend for rising prices, up to the 3600, a new high. On the downside, a breach of support at 40 DMA at 3423 would strengthen the bearish momentum through 10 DMA at 3423. This could also trigger losses towards 3400. Indicators point to higher prices, and we expect prices to test the 3600 in the near term.
