NY 2nd Month Sugar Futures
NY sugar strengthened yesterday, as buying pressure triggered a close above the 40 and 10 DMAs of 18.00 at 18.28. The stochastics are converging on the upside once again, with %K/%D gaining momentum back to the overbought area. The MACD diff is also positive and diverging. A long bullish candle body with a short upper wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 18.30, but prices have struggled above that level in recent days. A break above this level would confirm the trend for rising prices up to 19.00. On the downside, a breach of support at 10 and 40 DMAs at 18.00 would strengthen the bearish momentum. This could also trigger losses towards the 17.71. Indicators point to higher prices in the near term, but to confirm the trend for further gains, the 18.30 resistance needs to be breached first.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday, as resistance at 512.60 capped strong upside momentum. This prompted a close below this level at 512.3. The stochastics are rising once again, with %K/%D converging back towards the overbought, as the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close above 512.60 and then target 519. The 10 DMA is closing in and is now supporting prices from the downside. A bullish candle with a narrow body and longer lower wick suggests that we could see prices retest these resistance levels in the near term.
NY 2nd Month Coffee Futures
NY coffee sold off sharply yesterday as markets struggled above the new high of 425, prompting a weakness back to the 400 support level, closing just above 404.40. The stochastics are falling, with the %K/%D converging on the downside, as the MACD diff is positive and converging, sending strong sell signals. This could set the scene for lower prices towards the 10 DMA support level at 386.26. A break below this would confirm the trend for falling prices, down to the support of 381.40. The trend support is limiting downside pressures in the meantime, and a lack of selling pressure below this level suggests that markets lack conviction for the trend change. Hence, to confirm a continuation of the longer-term trend, futures need to retest and then subsequently break above the 430 level before targeting 450. Long-term momentum remains on the upside, and the reaffirmation of trend support suggests this trend will remain intact. A breach of 400 is needed to suggest further weakness.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading caused the market to close at 5663. The stochastics are falling, and the MACD diff is positive and converging, suggesting lower prices in the near term. To confirm the outlook for lower prices, futures need to close back below the 10 DMA at 5627 and then target 5500. Alternatively, a break above 5750 could set the scene for new highs. A narrow-bodied candle with short wicks points to market uncertainty, and futures need to break out of current resistance/support to confirm the longer-term outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures jumped higher yesterday as protracted buying pressure triggered a close on the front foot at 10302. The stochastics are showing signs of convergence on the upside, with the %K/%D about to give a strong buy signal. Likewise, the MACD diff is negative and converging; this could set the scene for higher prices to the 10 DMA at 10616, but futures need to breach the 10260 level completely first. A break above this level would confirm the outlook of higher prices up to 10779. On the downside, a break below the support level at 10000 and an appetite for lower prices could set the scene for 9542. A two-line strike formation, however, could point to a continuation of the recent trend on the downside. To confirm the indicators’ momentum, futures need to break back above the 10-day moving average in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures strengthened yesterday as protracted buying pressure triggered a close back above the 8000 level at 8162. The %K/%D is converging on the upside in the overbought territory. Likewise, the MACD diff is negative and converging, suggesting growing buying pressures. On the upside, finding support above 8000 could trigger gains through 8300 towards the 10 DMA at 8478. On the downside, a break back below 8000 level could trigger losses back towards 7820. That level has been supporting in recent weeks, and a break below it would signal strong selling pressure. Short wicks signal that the buying pressure is growing, and the bullish outlook is on the horizon.
