NY 2nd Month Sugar Futures
NY sugar futures lost ground yesterday after prices failed into the moving average support level, prompting a close at 21.69. The stochastics are falling, with %K/%D about to converge on the downside, sending a sell signal. The MACD diff is negative as futures failed to confirm the outlook of higher prices after failing to 22.00. Futures need to close above the moving averages at 22.25 and then target 23.00 to indicate the change of trend. On the downside, the long candle suggests an increased appetite for lower prices in the near term. Prices need to close below 21.50 before targeting 21.00. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to remain in the lower trading ranges, with support at 21.50 holding firm today.
Ldn 2nd Month Sugar Futures
Ldn sugar futures buckled yesterday as protracted selling pressure triggered a close on the back foot at 600.80. The stochastics are falling, and %K is about to cross below the %D level – a sell signal. The MACD diff is negative and diverging, confirming growing selling pressure; this could set the scene for lower prices below the 600 level. A break below this level would confirm the outlook of lower prices down to 580.70. On the upside, a break above the 615 resistance level and a reaffirmation of support above previous sessions’ highs at 620 could strengthen the trend on the upside. Futures need to take out the 600 in order to confirm the outlook of lower prices.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading caused the market to close at 184.35. The stochastics are rising near the oversold, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the outlook for higher prices, futures need to close back above the 40 DMA at 184.58 and then target 188.50. The 40 DMA is starting to close in and resisting prices on the upside. However, a break below 180 could indicate growing downside pressures. A tight trading range in the last couple of sessions points to market uncertainty, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged slightly higher on the open, but the bullish momentum was not strong enough, and futures closed below the near-term resistance at 3095. The stochastics are edging slightly higher, and the MACD diff is negative and converging. The rejection of prices above the shorter-term DMA has formed a candle with a narrow body and short wicks, suggesting an appetite for higher prices, however, lacking conviction to break above the near-term resistance. If prices were to break above these levels, this could trigger a test of 3100. On the downside, futures need to take out 3020 and then robust support at 3000. A break below this level would confirm the outlook for lower prices.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at 6000. This level held firm, and the future closed at 6049. The stochastics are falling, and the MACD diff is converging on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the 10 DMA support at 5961, which could set the scene for futures to take out the 5500 level. On the upside, the market needs to take out resistance at 6100 and then 6250. A break below the 10 DMA level would confirm the indicators’ outlook on the downside in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading saw prices close at 5162. %K and %D are falling on the downside out of the overbought, which could be a strong sell signal. The MACD diff is positive and converging, suggesting some appetite for lower prices, but futures need to break below the 10 DMA, a firm support level, to trigger the momentum. A break below this level towards 5000 would confirm the strong bearish momentum. Conversely, an appetite for prices above the 5200 level could trigger a test of resistance of 5500. A gravestone doji candle shows rejection of higher prices and could point to an end of bullish sentiment we have seen in the past. We anticipate prices on the back foot in the near term.
