NY 2nd Month Sugar Futures
NY sugar gapped lower yesterday but struggled to break below 10 DMA, triggering a strong gain during the day to close at 19.81. The stochastics are flattening out in the overbought, suggesting waning buying pressures, and the MACD diff is positive and converging. Volumes are also strengthening, suggesting we could see futures try to break out of the current ranges in the near term. To confirm this, futures need to hold support at 10 DMA at 19.32, but we expect futures to struggle above 20.00. On the downside, if this level does not hold, we could see marginal losses of 19.00 and 18.63, respectively. We expect futures to test the 19.80 level today once again, struggling to break above it.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened lower yesterday but consolidated during the day, testing resistance at 100 DMA at 534.76. The market closed at 532.10. The %K/%D is overbought and converging. The MACD diff is positive and converging, suggesting capped buying pressures. To confirm the rejection of the support, prices need to take out 40 and 10 DMA at 522. A break below this level towards 512 would confirm the strong bearish momentum. Conversely, appetite for prices above the 100 DMA level at 534 could trigger a test of resistance at 550. A doji candle signals uncertainty about the outlook for higher prices, and if the futures continue to struggle above 100 DMA, we could see prices edge lower in the near term.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading saw prices close at 242.80. The %K/%D is diverging on the downside, out of the overbought, signalling further downside pressures. Likewise, the MACD diff converged on the downside, suggesting an appetite for lower prices, but futures need to break below 240 first to trigger the momentum. A break below this level towards 40 DMA at 239.78 would confirm the growing bearish momentum. Conversely, appetite for prices back above the 10 DMA at 248.38 could set the scene for 250. A long-legged doji candle shows indecision about either direction; the length of the wicks also points to increased volatility during the day. The indicators point to a change of momentum on the downside, but futures need to close below 240 first.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday after prices broke below the 10 DMA at 4772, prompting a close at 4710. The stochastics are falling, with %K/%D diverging on the downside, and the MACD diff is positive and converging, soon to send a sell signal. To confirm the bearish indicators and rejection of prices above 10 DMA, futures need to take out support at 4664 and then target the trendline. On the upside, futures need to close above 10 DMA and then test 5000 in order to confirm the outlook of higher prices. We expect futures to weaken in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures buckled yesterday as protracted selling pressure triggered a close on the back foot at 7270. The stochastics are falling, and the MACD diff is positive and converging, confirming growing selling pressure; this could set the scene for lower prices below 7000. A break below this level would confirm the outlook of lower prices down to 6720. On the upside, a break above the 10 DMA resistance level and reaffirmation of support above the previous session’s high, 8100 could strengthen the trend on the upside in the long run. Futures need to take out the 100 DMA in order to confirm the outlook of lower prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged lower yesterday after futures tested new lows of 5200 to close at 5175. The stochastics are falling towards oversold, and the MACD diff is positive and converging, suggesting lower prices in the near term. To confirm the bearish indicators and rejection of prices above 10 DMA, futures need to take out support at 5150 and then target 5000. On the upside, futures need to close above 10 DMA at 5362 and then target 40 DMA at 5619 in order to confirm the outlook of higher prices towards 6000. A lack of shadow points to an appetite for lower prices. Prices need to be taken out at 5000 to confirm the outlook for lower prices. We expect futures to weaken in the near term.
