NY 2nd Month Sugar Futures
NY sugar futures edged higher yesterday, breaking above resistance at 10 and 40 DMAs and closing at 22.68. The stochastics are rising, with %K/%D diverging on the upside away from the oversold territory, and the MACD diff is negative and about to converge on the upside, sending a buy signal. The reaffirmation of support at 10 DMA at 22.35 could set the scene for higher prices back to test the 23.00 level. On the downside, futures need to break below the support of 40 DMA in order to end the recent sessions’ upside trend. Indeed, the 10 and 40 DMAs are providing robust support levels. Another bullish candle would create the formation of the three white soldiers, which would confirm the outlook for higher prices. The market needs to gain a footing above 23.00 in the immediate term to improve the outlook.
Ldn 2nd Month Sugar Futures
Ldn sugar edged higher yesterday as intraday trading caused futures to test appetite for prices at 10 DMA; the market closed below at 616.20. Stochastics are rising, with %K about to exit the oversold territory, confirming positive momentum. The MACD diff is negative and converging, suggesting growing buying pressure. To maintain positive momentum, prices need to close above the 10 DMA at 616.57 and then target 40 DMA at 630.05. On the downside, the rejection of prices above these levels could trigger losses back to 615 before targeting 600. Buying pressure remains relatively strong, and indicators point to additional highs. The reaffirmation of support above 10 DMA could strengthen the outlook of higher prices.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as moderate buying pressure prompted a close above 180 at 183.05. The stochastics are rising, and the %K/%D is about to converge on the upside, highlighting growing buying pressures. The MACD diff is negative and converging. To confirm another bullish candle, futures need to close above the shorter-term DMAs and then target 188.50. On the downside, the break below the current support level of 180 could set the scene towards the 100 DMA level at 176.58. However, the market struggled below level in recent sessions, and futures are likely to remain elevated in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee strengthened marginally yesterday, as moderate buying pressure triggered a close on the front foot at 3077. The stochastics are rising, with %K/%D about to converge on the upside in the oversold, sending a strong buy signal. The MACD diff is negative and diverging, but the momentum is stalling. A bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the 40 DMA resistance at 3081. This would confirm the trend for rising prices, up to 10 DMA at 3107. On the downside, a breach of support at 3000 would strengthen the bearish momentum. This could also trigger losses towards the 2970. Indicators point to further gains in the near term however futures need to break above the shorter-term MAs to confirm the outlook on the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower yesterday as prices failed above the previous day’s highs and then closed below at 6455. The indicators are favouring the upside; the stochastics are rising, with %K/%D diverging on the upside in the overbought area, and the MACD diff is positive and diverging, confirming further buying pressures. A break below 6450 would bring into play the support at 6000. On the upside, prices need to take out 6450 and the previous day’s high at 6648 to suggest further gains in the near term. Indicators point to further bullish momentum and confirm that futures must break above the recent highs to suggest a continued outlook on the upside.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged lower yesterday as prices closed at 5497. The indicators are starting to favour the downside, with %K/%D converging on the downside in the overbought area. The MACD diff is positive and converging, suggesting waning buying pressures. A complete break below 5500 would bring into play the recent sessions’ support level at 5000; this would help confirm the end of the recent bull run. Prices have been relatively well supported above the 10 DMA, and in order to indicate an improvement of market sentiment on the downside, futures need to break below this level and then target the 4740 in the near term. While the near-term outlook is seen on the downside, futures must break psychological support levels to suggest the end of the longer-term bull trend.
