NY 2nd Month Sugar Futures
NY sugar futures jumped higher yesterday and managed to close above 18.50 at 18.84 – marking a December high. The indicators suggest we could see higher prices in the near term. The stochastics have converged on the upside and are now rising further into the overbought, and the MACD diff is positive and diverging on the upside, confirming the trend. We expect futures to edge higher in the near term towards 19.00, a key resistance level. On the downside, if futures fail into 18.00 once again, then we could see prices break back below the 40 DMA at 17.89 before the long-term support of 17.00. We expect futures to be firm in the near term, and if the prices break above the 19.00 level, this could provide a strong buy signal of the upside.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground yesterday as protracted buying pressure triggered a close on the front foot above a key resistance of 519 at 529.40, marking a December high. The stochastics are rising with the %K/%D sending a buy signal, as the MACD diff is positive and diverging. This suggests we could see higher prices in the near term towards the 100 DMA at 539.55. On the downside, the candle found support at 520, and if the prices break through this level, we could see prices retreat back through the 10 DMA at 510.34 before the 40 DMA at 502.17. The three-white soldier formation is a bullish signal, but futures need to take out 540 in order to confirm the long-term outlook on the upside.
NY 2nd Month Coffee Futures
NY coffee futures edged higher yesterday, maintaining the support at the trendline and closing at 425.10. The stochastics are rising, with %K/%D remaining heavily overbought, while the MACD diff is positive and flat, suggesting that while there is no imminent sign of a trend reversal, the gains are capped. The reaffirmation of support at 10 DMA at 397.83 could set the scene for further highs. On the downside, futures need to break below the support of 10 DMA in order to end the bull trend. For now, the 400 support remains firm; a breach of this level is needed to suggest a trend reversal.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as prices struggled to break above the previous day’s high, prompting a close at 5788. The stochastics are rising, with %K/%D diverging, and they will soon enter the overbought territory. The MACD diff is positive and diverging marginally, suggesting growing buying pressure. The indicators point to higher prices in the near term, and to confirm this, prices need to take out the 5800 level. A break above this level towards 6000 would confirm the continued long-term trend on the upside and set new highs. Conversely, appetite for prices below the 10 DMA at 5659 could trigger a test of support at 5569; tertiary support stands at 5500. A doji candle after a bullish candle signals market uncertainty, but the long-term trend is supporting prices from the downside. We anticipate prices will remain on the front foot in the near term.
NY 2nd Month Cocoa Futures
NY cocoa strengthened yesterday as buying pressure triggered a close on the front foot above the 10 DMA at 10538. The stochastics are rising, with %K/%D converging on the upside and sending a strong buy signal. The MACD diff is negative and converging. 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 40 DMA at 10722. This would confirm the trend for rising prices, up to 10779. On the downside, a breach of support at 10 DMA would strengthen the bearish momentum. This could also trigger losses towards the 10000. Indicators point to higher prices, but a 40 DMA level has to be breached first to confirm the outlook in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures gained ground yesterday as marginal buying pressure triggered a close just below the robust resistance of 8294 at 8277. The stochastics are converging on the upside, with the %K/%D in the oversold area, as the MACD diff is negative and converging. This suggests we could see higher prices in the near term. The next robust resistance level stands at 40 DMA at 8622, but the market needs to take out an immediate resistance of 8294 first. On the downside, the candle closed above 8000, and if this level does not hold, we could see prices test 7820. A longer candle body points to a growing appetite on the upside, and futures need to break above the 10 DMA in order to confirm the outlook on the upside.
