NY 2nd Month Sugar Futures
NY sugar futures opened higher day on day yesterday but struggled above the 21.00 resistance once again to close at 21.03. The stochastics are rising, with the %K/%D about to converge on the upside, as the MACD diff is negative and converging. This suggests we could see further upside momentum in the near term. To confirm this, prices need to break above 21.00 completely. If the prices break through this level, we could see prices gain ground back through the 10 DMA at 21.44. On the downside, a break below 20.50 and 20.15 could signal further downside potential. The bearish candle body, after a robust gain on Wednesday, points to a resistance at 21.00 standing firm, and we could see prices struggle above this level today.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday as they struggled above 590 once again, causing the market to close at 587.50. The stochastics are rising, with %K/%D about to converge on the upside in the oversold, a strong buy signal, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close above 10 DMA at 595.25, then target 600. The 10 and 40 DMAs are closing in and capping prices on the upside. However, a break below 575, the support level the prices struggled to break last week, could set the scene for lower prices. The narrow candle body with a longer lower wick alongside bullish indicators points to market uncertainty about lower prices, and the futures should gain footing in the near term.
NY 2nd Month Coffee Futures
NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 192.20. The RSI is rising, while %K/%D are diverging on the upside. The MACD diff is now positive and diverging, confirming growing buying pressures. On the upside, finding support above the 40 and 10 DMAs at 183 could trigger gains towards 195, a firm resistance. On the downside, a break below the key support level of 180 could trigger losses back towards 178.75. The candle is now supported at 40 and 10 DMAs, and a break below these levels could set the scene for lower prices in the near term. A strong upside candle and positive indicators highlight that a bullish outlook is on the horizon. However, the resistance at 192 has to be broken first to suggest this.
Ldn 2nd Month Coffee Futures
Ldn coffee gained ground yesterday as buying pressure triggered a close on the front foot at 3381. The stochastics are rising towards the overbought; however, they are seen converging on the downside, as the MACD diff is positive and diverging, signalling waning buying pressures in the near term. This suggests we could see prices soften towards 3300 in the near term. On the upside, if this support holds, we could see prices gain momentum to 3400 once again. A longer upper wick on Thursday points to the appetite for higher prices; however, futures need to take out 3400 in order to confirm the outlook on the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw prices close at 6452. The %K/%D is overbought and converging on the downside. The MACD diff is positive and about to converge on the downside, suggesting waning buying pressure. The indicators point to softer prices in the near term, and to confirm this outlook, futures need to take out the 10 DMA at 6368. A break below this level towards the 6000 would confirm the strong bearish momentum. Conversely, appetite for prices above 6677 could trigger a test of resistance of 6700. A candle with a longer lower wick after rangebound moves in recent days signals market uncertainty about higher prices and narrowing support and resistance. DMAs are creating a tight trading range, a break out of which would set the scene for strong momentum. We anticipate prices will soften in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday, causing the market to close at 5350. The stochastics are converging in the overbought, with %K/%D converging on the downside, and the MACD diff is negative and diverging. To confirm the outlook for lower prices, futures need to close back below the 10 DMA level completely before targeting 5300. The 5500 level is now a robust resistance. A longer candle body with a long lower wick points to a potential change in trend in the near term, and if the futures break below the 10 DMA at 5386 completely, this would confirm the further bearish momentum.
