NY 2nd Month Sugar Futures
NY sugar futures opened lower yesterday but consolidated during the day, testing resistance at the 50% fib at 20.76. The market closed at 20.58. The %K/%D is weakening into the oversold territory. The MACD diff is negative and diverging, suggesting continued selling pressure. The indicators point to lower prices in the near term, and to confirm the rejection of the support, prices need to take out the 40 DMA at 20.32. A break below this level towards 20.00 would confirm the strong bearish momentum. Conversely, appetite for prices back above the 20.76 level and could trigger a test of resistance at 10 DMA at 21.35; tertiary resistance stands at 22.00. A thin candle body signals uncertainty about the outlook for higher prices, and if the futures continue to struggle above 20.76, we could see prices edge lower in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened lower but managed to close higher day-on-day at 572.60. The stochastics are falling, but %K is seen tailing off on the upside, which could suggest a change of momentum in the near term. The MACD diff is negative and diverging, but momentum is stalling, suggesting a possible change of momentum. On the upside, futures need to break above the robust resistance levels of 575 and 580.70 to trigger the momentum. Prices would then need to take out the 600 level to confirm the longer-term outlook on the upside. Conversely, appetite for prices below 570 could trigger a test of support of 550. The 40 DMA crossing above 100 DMA should provide robust support on the downside. To confirm the indicators’ outlook on the upside, futures have to break above the 575 level first.
NY 2nd Month Coffee Futures
NY coffee strengthened yesterday as protracted buying pressure triggered a close on the front foot above 40 DMA at 252.36 at 253.45. The stochastics are rising, with the %K/%D converging on the upside near the oversold. The MACD diff is negative and converging. A long bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 10 DMA completely. This would confirm the trend for rising prices, up to 260 and then the trendline at 268. On the downside, a breach of support at 240 would strengthen the bearish momentum. This could also trigger losses towards the 100 DMA at 239.19. Indicators point to higher prices, and we expect futures to strengthen in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged slightly higher yesterday as intraday trading saw prices supported by 4664. The market closed at 4742. The %K/%D are oversold and converging on the upside. The MACD diff is negative and converging, suggesting growing buying pressure. The indicators point to higher prices in the near term, and to confirm the confirmation of support, prices need to take out 4800. A break above this level towards the 10 DMA at 4884 would confirm the strong bullish momentum. Conversely, appetite for prices below the 4664 level could trigger a test of 4500. Two positive doji candles point to market hesitation for strong upside pressures. Futures need to take out near-term resistance to set the scene for further bullish momentum.
NY 2nd Month Cocoa Futures
NY cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot at 6651. The stochastics are rising, with the %K/%D exiting the oversold area, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards the resistance of 7000, but the market needs to take out immediate resistance of 6720. On the downside, if the candle closes below the 10 DMA at 6265, we could see prices test the 6000 level. A longer lower wick points to an appetite for higher prices, but futures need to take out 6720 completely in order to confirm the outlook on the upside.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher yesterday, testing the 10 DMA resistance and closing slightly below at 4938. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is positive and diverging. The reaffirmation of support at 10 DMA at 4576 could set the scene for higher prices back to test the 40 DMA level at 4979. On the downside, futures need to break below the support of 10 DMA in order to end the recent sessions’ upside trend. Indeed, the 10 and 40 DMAs are providing robust support/resistance levels. Recent bullish candles in the previous sessions confirm the outlook of higher prices, and a break above 10 DMA highlights the appetite for higher prices. The market needs to gain a footing above the 40 DMA in the immediate term to improve the outlook.
