NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 18.00 once again. This level held firm, and futures closed at 18.17. The stochastics are rising, with %K/%D having converged on the upside in the oversold, and the MACD diff also converged on the upside, signalling a strong buy signal. To confirm the outlook for higher prices, futures need to break above the 10 DMA at 18.29 completely, which could set the scene for futures to take out the 18.63. On the downside, the market needs to take out 18.00. The candle found support above this level, and a longer upper wick signals an appetite for higher prices. If the futures break above the current resistance, we could see prices edge higher, and indicators point to the start of an uptrend.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained marginal ground prices struggled below the 500 level, prompting a close on the front foot at 502.30. The %K/%D is diverging on the upside after converging in the oversold, which is a strong buy signal. The MACD diff converged on the upside, confirming this signal. The indicators point to higher prices in the near term, and to confirm this trend, prices need to take out a robust resistance at 512.60. A break above this level towards 520 would confirm the growing bullish momentum. Conversely, an appetite for prices below 500 could trigger a trend for lower prices. A longer upper wick points to increased appetite on the upside, and a break above 512 would confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
NY coffee futures weakened yesterday, struggling above the 250 level. The market closed at 242.90. The stochastics are falling, with %K/%D converging on the downside, and the MACD diff is also positive and converging, pointing to a near-term decline in prices. To confirm the outlook for deteriorating prices and yesterday’s bearish engulfing candle, prices need to break below support at 240, where the 10 DMA level is currently. A break below 233.35 would break the upside trend pattern, which could suggest a longer-term trend reversal. Conversely, if support at 240 can hold firm, this could trigger gains back towards the resistance at 250. A breach of this level would confirm the outlook for higher prices, with gains seen towards 255.30. We expect the momentum to remain on the back foot, but the longer-term trend is likely to hold in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday after prices failed above the robust resistance at 4664, prompting a close at 4619. The stochastics are falling, with %K/%D tailing off on the downside in the overbought, and the MACD diff is positive and flat, suggesting waning upside pressures. To suggest lower prices in the near term, futures need to break below the trend support line and then target the 10 DMA at 4457. On the upside, a breach of 4664 would confirm the outlook of higher prices. We expect prices to weaken in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures failed above the previous day’s highs yesterday as intraday trading prompted a close at 7750. The stochastics continue to strengthen, with %K/%D seen diverging on the upside in the overbought; the MACD diff is positive and diverging. The rejection of prices above 7800 has formed a candle with a long body and a longer lower wick, suggesting that prices struggled above that level. If prices were to break back above this level, this could trigger a test of 8000. To suggest a bearish candle, futures need to take out the 40 and 10 DMAs and then support at 7025. A break below these levels would confirm the outlook for lower prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday to close at 5469. The stochastics are rising marginally, with %K/%D edging higher, which could suggest further momentum on the upside in the near term. The MACD diff is positive and flat as upside momentum slowed. On the upside, futures need to break above the robust resistance levels of 10 and 100 DMAs at 5444 and 5560, respectively, to trigger the momentum. Conversely, appetite for prices below 5359 could trigger a test of support of 5000. A dragonfly doji candle shows rejection of lower prices, but a break above the near-term resistance has failed to materialise in recent weeks, and we expect this to hold in the near term.
