NY 2nd Month Sugar Futures
Prices weakened yesterday as moderate selling pressure triggered a close at 22.24. The stochastics are falling; the %K/%D is diverging towards the oversold, signalling a continuation of a bearish trend. The MACD crossed on the downside, a strong sell signal, suggesting we could see lower prices in the near term. The next robust support now stands at 22.00, and a short wicks support market indecisiveness below that level. On the upside, a break above 10 DMA at 22.82 could see the test of 23.00 level. We expect prices to remain on the back foot today.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gapped lower yesterday, but support at 615 caused the market to close at 617. The stochastics are falling, with %K/%D diverging on the downside near the oversold territory, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm this momentum, a break below support at 615 could set the scene for 600. On the upside, to suggest the outlook of higher prices, futures need to close back above all the DMAs, with 40 DMA at 625.64 and then target 10 DMA at 640.09. The long candle body with short upper and lower wicks points to a strong appetite below the 10 DMA. However, the 615 is holding firm, and we expect prices to struggle below this level today.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading caused the market to close at 185.15. The stochastics are converging on the upside, and the MACD diff is negative and converging, suggesting stalling downside pressures in the near term. To confirm the outlook for higher prices, futures need to close back above the shorter-term DMAs at 187. On the downside, the rejection of prices above 180 could trigger losses back towards 175. A break below this level and a test of 100 DMA would confirm the trend on the downside. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance to confirm the longer-term outlook.
Ldn 2nd Month Coffee Futures
Ldn coffee edged higher yesterday as intraday trading caused futures to close below 10 DMA once again; the market closed at 3108. The %K/%D has been moving sideways in recent days. Likewise, the MACD diff is negative and fluctuates, struggling to point out an outlook. To maintain another bullish candle, prices need to close above the 10 DMA and then target 3200. On the downside, the rejection of prices above these levels could trigger losses down to 40 DMA, but futures need to close below 3050 first. Volumes have been subdued as the markets struggled to gain conviction in any particular direction. Additionally, inside bullish candles could point to a continued sideways trend in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday, causing the market to close at 5605. The stochastics are falling, with %K/%D diverging on the downside in the overbought, and the MACD diff is positive and converging, suggesting slightly lower prices in the near term. To confirm the outlook for lower prices, futures need to close back below 5500 and then target the 10 DMA. The 10 DMA is closing in and supporting prices on the downside. However, a break above 5600 could set the scene for 5700 and then 5798 – a recent high. The narrow candle body with long upper and lower 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 the nerve yesterday; however, prices struggled above 4740 and closed on the back foot at 4695. The stochastics are falling, with %K/%D seen diverging on the downside. The MACD is positive and converging, confirming the strengthening appetite for lower prices. The rejection of higher prices may prompt a break back towards support at 4600; a subsequent breach of this level could trigger losses towards 10 DMA at 4514. On the upside, a break of 4740 may prompt futures to test the resistance at 4786. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. A narrow candle body points to a lack of appetite for prices above these levels, and the indicators point to downside pressures in the near term.
