NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday as intraday trading saw futures test appetite above 23.50. This level held firm, and futures closed at 23.28. The stochastics are falling, with %K/%D converging on the downside, sending a strong sell signal. The MACD diff is positive and converging, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 23.00, which could set the scene for futures to test the 10 DMA at 22.56. On the upside, the market needs to take out the resistance of 23.50, which is the previous day’s closing price, and then the resistance at 24.00. Today’s candle has already edged lower, highlighting a lack of momentum on the upside. We expect futures to edge lower in the near term; however, support levels at the shorter-term moving averages are likely to hold firm in the meantime.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday as intraday trading saw prices struggle above the 670 level. This level held firm, and the future closed at 661.90. The stochastics are beginning to fall, with %K/%D converging on the downside in the overbought, and the MACD diff is positive and converging, signalling growing selling pressures. To confirm the outlook for lower prices, the market needs to take out support at 650 and then the 10 DMA at 645.36. On the upside, a break above the resistance at 670 could set the scene for futures to take out the 100 DMA level. A negative candle after the bullish one signals uncertainty about the outlook for higher prices, and the futures need to take out the near-term support to confirm the downside momentum.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as prices failed above the previous day’s highs and then closed below at 183.70. The indicators are favouring moderate downside movement; the stochastics are falling, with %K/%D converging on the downside and edging away from the overbought area, and the MACD diff is positive and converging on the downside, confirming waning buying pressures. A break below the 40 and 10 DMAs at 184.30 and 181.97, respectively, would bring into play the support at 180. On the upside, prices need to find support above the DMAs before targeting 190 in the near term. Indicators point to further decreasing buying appetite, and a fall below the current support of 180 would confirm further growth in the bearish momentum.
Ldn 2nd Month Coffee Futures
Ldn coffee futures gained ground yesterday as buying pressure triggered a close on the front foot above 3200 at 3251. Today’s candle, however, gapped lower below the trend support level, opening at 3100. As a result, the stochastics are falling, with the %K/%D exiting the overbought area, as the MACD diff is positive and converging. This highlights today’s jump lower. However, the candle is already seeing moderate upside pressures, and we expect futures to edge back higher to fill in the gap. To do that, prices need to break above the trendline before targeting the 10 DMA at 3146. On the downside, if today’s upside does not hold, we could see prices test 3100 before 3000.
NY 2nd Month Cocoa Futures
NY cocoa futures weakened yesterday as futures failed into the resistance at 4740, prompting prices to sell off to close at 4547. The stochastics are now declining, with %K/%D converging on the downside and sending a strong sell signal. The MACD is positive and converging. A break below 4550 would confirm the bearish engulfing candle. This may pave the way for lower prices to the 10 DMA at 4450 with the tertiary level at 4400. Conversely, the reaffirmation of support above 10 DMA would suggest higher prices and a close above 4600, setting the scene for higher prices towards recent highs. Yesterday’s candle points to a rejection of higher prices, and futures have to break below the 10 DMA level before we can confirm the change of trend.
Ldn 2nd Month Cocoa Futures
Ldn cocoa weakened yesterday as protracted selling pressure triggered a close on the back foot at 3651. The stochastics are beginning to converge on the downside in the overbought. The MACD diff is positive and converging. A full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 3600 support level, which is crucial to confirm the change of trend. This would confirm the trend for falling prices, down to the 40 DMA at 3486. The bearish engulfing pattern suggests an impending market downturn, and we expect prices to continue to edge lower in the near term, testing the 3600 level.