NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday as moderate buying pressure prompted a close below the resistance at 19.80 at 19.66. The stochastics are rising, and the %K/%D converged 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 19.80 level and then target the 10 DMA at 19.87. On the downside, the break below the current support level of 19.50 could set the scene towards the 19.00 level. However, the market struggled below this level in recent sessions, and we expect futures to edge higher in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged higher yesterday and managed to close above the resistance of 550. The indicators suggest we could see higher prices in the near term. The stochastics are rising out of the oversold, and the MACD diff is negative and converging on the upside. We expect futures to edge higher in the near term towards 10 DMA at 566 and then 580, the robust level on the upside. On the downside, if futures fail to 550 once again, then we could see futures break back below 540 before the long-term support of 520. We expect the future to be firm in the near term towards the 10 DMA level. If this level is broken, it could send a strong buy signal.
NY 2nd Month Coffee Futures
NY coffee weakened yesterday as protracted selling pressure triggered a close on the back foot at 221.85. The stochastics are falling, as the %K/%D is seen diverging on the downside, signalling a potential change of trend. The MACD diff is positive and converging. The full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 10 DMA support level of 225 completely. This would confirm the trend for falling prices, down to the 212 level. On the upside, resistance at 240 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards the 240. A strong, bearish candle suggests an impending market downturn, and we expect prices to continue to fall in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw futures test appetite at 4200. This level was held firm, and the future closed at 4117. The stochastics are falling, with the %K/%D falling out of the overbought, and the MACD diff is positive and converging, signalling growing selling pressures. To confirm the outlook for lower prices, a break below the support of the 4000 level could set the scene for futures to take out the 10 DMA at 3987. On the upside, the market needs to take out resistance of 4200. A doji candle signals uncertainty about the outlook for lower prices, and the futures need to take out the 4000 to confirm the outlook for lower prices.
NY 2nd Month Cocoa Futures
Prices weakened yesterday as moderate selling pressure triggered a close to the 10 DMA support level; the market closed at 104444. The stochastics are falling, signalling a continuation of a bearish trend. The MACD diff is also softening, and the full-bodied candle formation supports the market appetite for lower prices. Dips in the market have been well-bought in the last couple of sessions, but in order to confirm the change in trend, prices need to break below the current support of 10 DMA at 10469 and then 10000. Conversely, a break above the 11000 resistance line could set the scene for a test of recent highs at 11722. We expect prices to weaken in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened yesterday as they closed just above the trend support at 9113. The stochastics continue to fall as they edge out of the oversold. The MACD diff is positive and converging, pointing to a growing selling pressure. A break below the 10 DMA at 8878 would confirm the outlook for lower prices and the formation of three black crows, a clear bearish sentiment. This may pave the way for lower prices to 8500. Conversely, the reaffirmation of support above trend support would suggest higher prices and a close above 9800, setting the scene for higher prices towards the recent highs at 9980. A long lower wick suggests an appetite for lower prices. However, the 10 DMA level needs to be broken first.
