NY 2nd Month Sugar Futures
NY sugar futures weakened yesterday as futures closed below the longer-term DMA support at 18.78. The stochastics continue to fall as they edge towards the oversold. The MACD diff just converged on the downside and is now diverging, pointing to a growing selling pressure. A break below 18.63 would confirm the outlook for lower prices and the three black crows’ formation, a clear bearish sentiment. This may pave the way for lower prices to 18.50, with the tertiary level at 18.00. Conversely, the reaffirmation of support above 19.00 would suggest higher prices and a close above the 10 DMA at 19.45, setting the scene for higher prices towards 19.80. A longer candle body suggests an appetite for lower prices. The indicators also point to a further decrease in prices in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday as prices closed below the robust support of 512.60 at 509. The indicators favour the downside, with %K/%D diverging on the downside close to the oversold area, suggesting further selling pressures. A break below the 500 would bring into play the recent sessions’ support level at 493.80. In order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 40 DMA at 518.04 and then target the 10 DMA at 524.58 in the near term. The three black soldiers’ formation suggests strong selling pressures. A break below the support level of 500 would confirm this formation and provide a longer-term outlook on the downside.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday after testing the resistance level of 10 DMA. The market closed higher at 247.20. The stochastics are gaining momentum, with %K/%D strengthening after converging on the upside, a strong buy signal. The MACD diff is negative and converging. The reaffirmation of support at the 10 DMA level at 245.44 could set the scene for higher prices back to test 255.30. On the downside, futures need to break below the near-term support of 240 in order to confirm the bearish trend and the inverse hammer formation. Indeed, yesterday’s resistance level was robust, and a break above this level would suggest a strong conviction on the upside. The longer upper wick with a narrow body confirms this resistance is still intact.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw prices close at 4897 as they struggled above 5000 once again. The %K/%D is diverging on the downside, but that momentum is slowing, which could suggest stalling downside pressures that have weighed on the price performance in recent days. The MACD diff is positive and converging. To suggest the appetite for higher prices, futures need to break above 5000, a firm resistance, to trigger the momentum. Conversely, appetite for prices below the trend support could trigger a test of support at 40 DMA at 4499. A gravestone doji candle shows rejection of higher prices as futures struggle above that level; if the resistance is broken, we expect prices to strengthen in the near term, confirming the continuation of the longer-term trend on the upside.
NY 2nd Month Cocoa Futures
NY cocoa opened higher but still struggled to break back above the 10 DMA level, causing futures to close at 7271. The %K/%D is about to converge on the upside; this could create a strong upside signal. The MACD diff is negative and converging, confirming the continuation of buying momentum. To maintain that trend, prices need to close above the 10 DMA and the target 8000. On the downside, the rejection of prices above the current levels could trigger losses back below 40 DMA before targeting 100 DMA, which is a robust support level. Buying pressure yesterday struggled above the previous day’s highs, and the inside candle pointed to a lack of appetite above the near-term resistance. If momentum could hold above this level, we could see prices edge higher in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened yesterday as futures failed into the resistance at 40 DMA at 5417, prompting a close at 5233. The stochastics continue to rise marginally. The MACD diff is positive. A break below the 10 DMA at 5260 support would confirm a bearish engulfing candle pattern. This may pave the way for lower prices to 5000. Conversely, the reaffirmation of support above 100 DMA would suggest higher prices and a close above 6000. There is a growing appetite for lower prices, which could trigger a break of 10 DMA support today.
