NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday after finding support at 19.20, causing the market to close at 19.44. The stochastics are strengthening, with %K/%D diverging on the upside out of the oversold, sending a strong buy signal. The MACD diff is negative and converging, suggesting more upside impetus. To confirm the double bottom formation, futures need to close back above 40 DMA and then target 100 DMA at 19.85. On the downside, a break below 19.20 could set the scene for 19.00. The narrow candle body with a longer lower wick points to prices being tested and rejected, which could be indicative of appetite on the upside. The indicators also highlight further upside momentum, and futures need to break above 19.80 to confirm this.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged higher as intraday trading caused them to close at 526.70. The stochastics are rising, with %K/%D diverging out of the oversold; the MACD diff is negative and converging, suggesting further gains. The confirmation of the 10 DMA support yesterday has formed a candle with a short body but a longer lower wick, suggesting an appetite for higher prices. If prices were to break back above 530, this could trigger a test of 540. To confirm another bullish candle, futures need to take out 540. A break above this level would confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading saw prices close at 229.60. The %K/%D is seen slowing on the downside in the oversold. The MACD diff is weakening, but momentum is slowing, suggesting we could see some moderate weakness before a trend change. To confirm that, futures need to break above the 40 DMA level at 232.09 to trigger the momentum. A break above this level towards resistance at 10 DMA. Conversely, appetite for prices below 220 could trigger a test of support at 100 DMA at 216.56. A long-legged doji candle shows indecision about higher prices above the 40 DMA. The indicators point to a fall in prices, and if futures hold above 225, we could see a potential trend reversal in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged marginally lower yesterday as prices closed at 4118. The %K/%D is now flattening out in the oversold territory. Likewise, the MACD diff is negative. The indicators suggest a waning appetite for lower prices, but futures need to break above the 40 DMA level at 4251 completely to trigger the momentum on the upside. A break above this level towards 4338 would confirm the strong upside momentum. Conversely, appetite for prices below 4000 could trigger a test of support of 100 DMA. A long-legged candle shows indecision about either direction; the length of the wicks also points to increased volatility during the day. The indicators point to a slowing downside momentum, but futures need to close above 40 DMA, the level they struggled to break above completely in the last couple of days.
NY 2nd Month Cocoa Futures
NY cocoa edged higher yesterday as intraday trading caused futures to test appetite at 6720 once again; the market closed above it at 7074. Stochastics are rising, and %K/%D converged on the upside in the oversold territory, confirming a change of trend in the near term. The MACD diff is negative and converging, suggesting waning selling pressure. To maintain positive momentum, prices need to close completely above the 10 DMA level and then target 7500. On the downside, the rejection of prices above 10 DMA at 6996 could trigger losses back to 100 DMA at 6476. Buying pressure remains weak, and the indicators point to an end of the bearish momentum. A complete break above the 10 DMA would help confirm the change of trend.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher yesterday, with prices closing above the 10 DMA level at 5553. The stochastics are rising, with %K/%D converging on the upside, and the MACD diff is negative and converging, suggesting we could see a change in momentum in the near term. On the downside, futures need to break below the support of 5359 in order to confirm the outlook of lower prices. This could trigger further losses towards 5000. Conversely, the reaffirmation of support at 10 DMA at 5486 could set the scene for higher prices back to 6000. The 10 and 100 DMAs are closing in, creating a narrow trading range. The positive indicators point out that we could see a break above 10 DMA in the near term, and that would confirm the bullish momentum.
