NY 2nd Month Sugar Futures
NY sugar weakened yesterday as protracted selling pressure triggered a close on the back foot at 18.84. The stochastics are showing signs of a trend reversal, with %K/%D tailing off on the downside, about to send a sell signal. The MACD diff is negative; however, it lacks the conviction to suggest an outlook. A full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 10 DMA support level at 18.90. This would confirm the trend for falling prices, down to 18.10. On the upside, resistance at 40 DMA at 19.48 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards the 100 DMA at 19.83. The bearish candle with a longer upper wick suggests an impending market downturn, and we expect prices to continue to fall in the near term.
Ldn 2nd Month Sugar Futures
Prices weakened yesterday as moderate selling pressure triggered a close above the 512 support; the market closed at 514.30. The stochastics are falling moderately; %K/%D is seen converging, about to weaken back into the oversold, signalling a potential change in trend. The MACD is negative, and the full-length candle supports market decisiveness for lower prices. Prices have been capped by the 10 DMA, and in order to confirm the change of momentum, prices need to break below 512 and then 505. Conversely, a break back above the 10 DMA at 519.50 could set the scene for a test of 540. We expect prices to remain on the back foot.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as prices closed at 226.40. The indicators continue to favour the downside, with %K/%D diverging in the oversold area, suggesting continued selling pressures. The MACD is negative and diverging. A break below 225 would bring into play the robust support level at 220. Prices have struggled above 230 in recent days, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above this level and then target the shorter-term DMAs in the near term. If the 225 does not hold, we could see prices edge lower.
Ldn 2nd Month Coffee Futures
Ldn coffee futures continued to soften yesterday as moderate selling pressure saw futures test appetite at 4020 to close at 4083. The stochastics are oversold but are showing signs of convergence, which would send a clear bullish signal. The MACD diff is negative and converging, confirming the outlook for higher prices in the near term. To confirm that trend, futures need to break above near-term resistance at 40 DMA, which could set the scene for prices to take out 10 DMA at 4290. On the downside, a break below the robust support of 4000 would strengthen the bearish momentum into 100 DMA. A bearish candle with a longer lower wick in recent sessions points to a lack of appetite for lower prices, but near-term resistance in the form of short DMAs capped the gains on the upside. We expect futures to edge closer to 4000 today.
NY 2nd Month Cocoa Futures
NY cocoa futures softened yesterday after breaching support of 6720. The market closed at 6542. The stochastics continue to soften, with %K in the oversold territory, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through the support of 100 DMA at 6509. A break below this level would suggest strong selling pressures, which could bring into play the support at 6000. On the upside, futures need to gain back above 10 DMA at 6965 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards 7000. A longer candle yesterday suggests robust selling pressures; however, prices need to break below the current support level to confirm the outlook on the downside in the long term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened yesterday after finding support above 5200. The market closed at 5204. The stochastics are seen converging on the downside, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through the support of 5000. A break below this level would set the scene for lower prices in the longer term. On the upside, futures need to gain back above 5500 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level of 6000. The long candle points to an increased appetite on the downside; however, we expect prices to remain above 5000 today.
