NY 2nd Month Sugar Futures
NY sugar futures weakened yesterday as futures failed above the 18.00 level and closed at 17.89 – an August low. The stochastics continue to decline but are seen converging on the upside in the oversold. The MACD diff is negative and flat. A break below the robust near-term support would confirm further downside momentum for lower prices. This may pave the way for lower prices to 17.50. Conversely, the reaffirmation of support above this level would suggest higher prices and a close above 18.00, setting the scene for higher prices towards the 10 DMA at 18.50. Yesterday’s candle body suggests an appetite for lower prices and could trigger a break of support today. The indicators, however, are pointing to an end in downward pricing pressures in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar edged higher yesterday as intraday trading caused futures to test appetite for prices above 512.60; the market closed at 516.60. Stochastics are rising, and %K/%D is converging on the upside, confirming positive momentum. The MACD diff is negative and converging, suggesting growing upside pressures. The indicators converging suggests an end to the downward trend in the near term. To maintain positive momentum, prices need to close above 519 and then target resistance at the 10 DMA at 516.60. On the downside, the rejection of prices above 10 DMA could trigger losses back to 512.60 before targeting 505. Buying pressure remains weak; however, the indicators suggest the end of the downside momentum. The break above the 10 DMA could confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading caused the market to close above the trend resistance at 319.70. The stochastics are continuing to fall, with %K edging towards the oversold, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the outlook for lower prices, futures need to close back below the trend resistance at 320 and then target 310. On the upside, the rejection of prices below the 10 DMA at 322.83 could trigger gains back towards 335. A break above this level and a test of 340 would confirm the trend on the upside. Yesterday’s candle points to market uncertainty for lower prices, and the futures need to break below the trend resistance to confirm the longer-term outlook on the downside.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading caused the market to close at 5041. The stochastics are rising, and the MACD diff is negative and diverging, suggesting lower prices in the near term before a potential change of trend. To confirm the outlook for lower prices, futures need to close back below 5000 and then target the 40 DMA level at 4859. The 100 DMA is starting to close in and supporting prices from the downside. However, a break above the 10 DMA level could set the scene for 5200. Two narrow-bodied candles with long wicks in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures opened higher yesterday but struggled above the 10 DMA, prompting futures to sell off to 10255. A close below 10000 could trigger losses back to the 9542 support in the near term. The stochastics are falling, and this could improve downside momentum; the MACD diff is starting to weaken, supporting the outlook for lower prices. On the upside, if prices can take out the 10 DMA and then 11500, this would confirm the trend on the upside. We believe that there is an appetite for lower prices in the near term.
Ldn 2nd Month Cocoa Futures
London cocoa futures edged lower yesterday as moderate selling pressure triggered a close at 8623. The stochastics are falling, with the %K leaving the overbought territory, and the MACD diff just flipped on the downside and is now diverging. A break of 8294 could trigger losses through 8000, with the tertiary level at 7500. On the upside, a break above 9000 could set the scene for bullish momentum to recent highs of 9500. A break below the 10 DMA suggests growing downside pressures. The indicators suggest we could see lower prices in the near term.
