NY 2nd Month Sugar Futures
NY sugar weakened yesterday as protracted selling pressure triggered a close on the back foot at 20.53. The stochastics are falling; however, %K/%D’s downside momentum is stalling as it falls in the oversold. The MACD diff is negative and diverging. A full bearish candle with little shadow suggests growing selling pressures; this could set the scene for lower prices to break below the 20.50 support level. This would confirm the trend for falling prices, down to 20.00. On the upside, resistance at 10 DMA at 21.44 has proven to be strong, and a break above that level would strengthen the bullish momentum. That would also trigger gains towards the 22.00. Narrowing support and resistance levels are creating a narrow trading range, but we believe that the prices will remain on the back foot today.
Ldn 2nd Month Sugar Futures
Ldn sugar weakened yesterday as protracted selling pressure triggered a close on the back foot at 596.90. The stochastics are falling, signalling a further continuation of the trend. The MACD diff is negative and diverging. A full bearish candle and a break below the 600 level suggest growing selling pressures; this could set the scene for lower prices to break below the 580 support level. This would confirm the trend for falling prices, down to recent support at 574. On the upside, the shorter-term moving averages are robust, and a breach above these levels could signal further gains. This could also trigger an upside towards the 100 DMA at 628. Yesterday’s candle suggests further downside, and we expect prices to continue to fall 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 217.35. The %K/%D is diverging on the upside further into the overbought. The MACD diff is positive and diverging, underlining recent buying pressures. On the upside, confirming support above the 212 level could trigger gains towards 220, a new high. On the downside, a break below the key support level of 210 could trigger losses back towards the 10 DMA at 204.71. The futures have been supported above this level, and a break below could set the scene for lower prices in the near term. A strong bullish candle highlights that buying pressures are strong; however, with the indicators being overbought, we could see a slight pause in this trend in the coming days.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw futures test appetite at 3800. This level was held firm, and the future closed at 3790. The stochastics are rising, and the MACD diff is diverging on the upside, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to completely break above the 3800 resistance, which prices are testing today. On the downside, the market needs to take out support at 10 DMA at 3676 and then support at 3600. With a longer upper wick on Thursday, we expect prices to edge higher today.
NY 2nd Month Cocoa Futures
NY cocoa futures opened higher yesterday, but resistance of 10000 caused futures to close lower on the day at 9891. The stochastics are seen diverging on the upside, with the %K/%D rising in the overbought; the MACD diff is fluctuating around the zero value. A break back below 10 DMA at 9462 could trigger losses through 9000, with the tertiary level at 8500. On the upside, a break above 10000 could set the scene for bullish momentum towards new highs. A doji candle with a longer upper wick has been formed, which points to market indecisiveness about higher prices. However, the indicators suggest a strengthening of the momentum in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa edged higher yesterday as intraday trading caused futures to test appetite above 8000; the market closed above this level at 8213. Stochastics are rising, and %K/%D is diverging on the upside in the overbought territory. The MACD diff is positive but converging. The indicators paint a mixed picture, struggling to point out an outlook. To maintain positive momentum, prices need to hold above 8000 and then target new highs. On the downside, the rejection of prices above this level could trigger losses back to 10 DMA at 7778. Buying pressure remains robust, with a break above the 8000 confirming this.
