NY 2nd Month Sugar Futures
NY sugar futures edged higher yesterday and managed to close above the 18.63 resistance at 18.86. The indicators suggest we could see higher prices in the near term. The stochastics are diverging on the upside, and the MACD diff is positive and diverging. On the upside, a break above the 40 DMA at 19.22 could then prompt a test of the 19.80 level. Superseding this level, resistance stands at 20.00. On the downside, if futures fail into 10 DMA at 18.46 once again, then we could see futures break back below 18.10 and then 18.00 – a robust support level. Yesterday’s break above the 10 DMA at the 18.60 level suggests that markets could pave the way for higher prices in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged higher yesterday, closing above the 530 level at 534.10. The indicators suggest we could see higher prices in the near term. The stochastics are rising, with %K/%D edging higher close to the overbought territory, and the MACD diff is positive and diverging on the upside, suggesting growing buying pressure. On the upside, yesterday’s close above the near-term resistance suggests an increased appetite for higher prices through 540.20 towards the 40 DMA at 546.30, the robust level on the upside. Conversely, on the downside, if futures fail into 10 DMA at 524 once again, then we could see futures break back below 512 before 500. The longer-term DMAs provide robust support on the upsides, and to confirm higher prices, futures need to be supported above 530 today.
NY 2nd Month Coffee Futures
NY coffee strengthened yesterday as buying pressure triggered a close near recent highs at 232.70. The stochastics are rising once again, with %K/%D converging on the upside in the overbought. The MACD diff is strengthening once again. A long bullish candle body with a short upper wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 235, but prices struggled above that level. This would confirm the trend for rising prices, up to 240. On the downside, a breach of support at 10 DMA at 223.69 would strengthen the bearish momentum. This could also trigger losses towards the 220. Indicators point to higher prices, but with prices failing above current resistance, futures are capped on the upside. We expect prices to remain elevated but struggle to breach the 240 level today.
Ldn 2nd Month Coffee Futures
Ldn coffee strengthened yesterday as moderate buying pressure triggered a close on the front foot at 4189. The stochastics are rising, with %K diverging on the upside in the overbought. The MACD diff is positive but flat, suggesting that upside momentum might be waning. A bullish candle body with a long lower wick suggests growing buying pressures, but resistance at 4200 is robust, and futures must first break above this level to suggest higher prices. This would confirm the trend for rising prices, up to 4300. On the downside, a breach of support at 4000 would strengthen the bearish momentum. This could also trigger losses towards the trend support. Indicators point to higher prices, but with prices failing above the near-term resistance, futures are capped on the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as prices struggled above the 40 DMA once again, causing the market to close below this level at 8879. The stochastics are rising, with %K/%D diverging on the upside in the overbought. The MACD diff is positive and diverging, but the upside momentum is stalling. To confirm the outlook for higher prices, futures need to close back above the 40 DMA at 8891 and then target 9000. At the same time, the 10 DMA is closing in and supporting prices from the downside. However, a break below that level could set the scene for 8000. The narrow candle body with longer lower wicks points to more appetite on the upside, but the futures need to break above the current resistance of 40 DMA to confirm the near-term outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures failed above the previous day’s highs yesterday as intraday trading caused it to close at 6586. The stochastics are rising, with %K/%D diverging in the overbought; the MACD diff is positive and diverging but flattening out, pointing to waning buying pressures. The rejection of prices at 7100 has formed a candle with a short body and a longer lower wick, suggesting a lack of conviction for higher prices. If prices were to break back above that level, this could trigger a test of 7348 and then 40 DMA at 7510. To suggest a bearish candle, futures need to take out support at 10 DMA at 6586. A break below this level would confirm the outlook for lower prices.
