NY 2nd Month Sugar Futures
NY sugar futures gained ground yesterday as protracted buying pressure prompted a test of the 10 DMA level to close just below it at 19.42. The stochastics are converging on the upside, about to send a buy signal. The MACD diff is also about to converge on the upside, confirming the growing upside trend. To confirm another bullish candle, futures need to break above the 10 DMA at 19.36 and then target 19.80. On the downside, the break back below 40 DMA at 18.90 could set the scene for lower prices back towards the support of 18.63. A strong candle body that broke above 40 DMA alongside bullish indicators points towards further strengthening in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground yesterday as buying pressure prompted a close above the 10 DMA level at 527.10. The stochastics are rising, and both the %K/%D and the MACD diff converged on the upside, sending a buy signal and suggesting further bearish momentum in the near term. A breach above the 100 DMA level at 532.57 would confirm this trend and would bring into play the robust resistance of 550, not tested since July 2024. Futures need to take this level out in order to confirm the trend in the long term. On the downside, the fall below the previous day's closing prices at 515 could trigger losses through the 500 support level. The DMAs provide strong support/resistance for prices, and if the 40 DMA remain firm, we could see prices edge higher in the near term.
NY 2nd Month Coffee Futures
NY coffee edged higher yesterday as intraday trading caused futures to test appetite above the 10 DMA; the market closed at 249.40. Stochastics are rising, and %K/%D converged on the upside and is now rising, confirming positive momentum. The MACD diff is negative and converging, suggesting an end to the downward trend in the near term. To maintain positive momentum, prices need to strengthen to close above 255.30 and then target 260 – a new high. On the downside, the rejection of prices above 250 could trigger losses back to the 40 DMA level at 239.69. Buying pressure remains weak; indicators point to growing buying pressure, but the thin candle body confirms market uncertainty.
Ldn 2nd Month Coffee Futures
Ldn coffee futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 5077, setting a new high. The %K/%D is diverging towards the overbought. Likewise, the MACD diff is positive and diverging. On the upside, confirming support at 5000 could trigger gains through 5100 towards 5200. On the downside, a break below this level could trigger losses back towards the 10 DMA at 4895. That level has been supporting futures prices, and a break below it would signal strong selling pressure. A longer upper wick signals slight uncertainty for higher prices, but the indicators suggest we will see further gains in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures opened higher yesterday, but resistance at the previous day’s high at 7770 caused futures to close lower on the day at 7588. The stochastics are still rising, with %K/%D diverging on the upside. The MACD diff is positive and diverging marginally. A break of the 10 and 40 DMA levels could trigger losses through 7025, with the tertiary level at 7000. On the upside, a break above 8000 could set the scene for bullish momentum towards 8622 – a July high. The indicators point to a reversal of momentum on the upside. However, futures struggled to break the resistance of 7770 in recent sessions.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading caused the market to close at 5312. The stochastics are rising, and the MACD diff is positive but flat, confirming the uncertainty for higher prices. To confirm the outlook for higher prices, futures need to close back above the 40 DMA at 5389 and then target the 100 DMA at 5688. The 10 DMA is starting to close in and supporting the prices from the downside. However, a break below that level could set the scene for 5000. Narrow-bodied candles in recent sessions point to market uncertainty, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
