NY 2nd Month Sugar Futures
NY sugar gapped higher yesterday, but a lack of further appetite prompted prices to soften during the day to close at 19.16. The stochastics suggest that futures are overbought at current levels. However, the %K/%D continue to diverge on the upside as the MACD diff is positive and diverging. Markets struggled above the 19.30 level yesterday. The next robust resistance level now stands at 19.30, with the 100 DMA at 19.43, capping prices from the upside from the longer-term perspective. Alternatively, with a breach of 19.00 yesterday, this level acts as robust support. A breach below it could trigger losses back to the 10 DMA at 18.40. We expect futures to hold above the 19.00 level today.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday after prices struggled above the previous day’s highs, prompting a close at 523.20. The stochastics are falling, with %K/%D converging on the downside in the overbought, and the MACD diff is positive and converging, about to send a sell signal. To confirm the bearish indicators and rejection of prices above 525, futures need to take out support at 519 and then target the 10 DMA at 515.90. On the upside, futures need to close above 525 and then test the 100 DMA at 537.48 in order to confirm the outlook for higher prices towards 540. We expect futures to hold their ground in the near term.
NY 2nd Month Coffee Futures
NY coffee futures opened lower, testing prices below the robust 400 level. However, markets lacked momentum below this level, prompting a close at 405.25. The stochastics have converged on the downside and are now falling, which suggests a change of momentum in the near term. The MACD diff is positive and converging. On the upside, futures need to break above the robust resistance levels of 425 to trigger the momentum. Conversely, appetite for prices below the 10 DMA at 404.53 could trigger a retest of support of 400. A dragonfly doji candle shows rejection of lower prices, as markers lacked appetite below the 400 level. The indicators point to an accelerating downside trend, and in order to confirm it, the current support level needs to be breached first.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday, causing the market to close at 5721. The stochastics are falling, with %K/%D converging on the downside, and the MACD diff just converged on the downside. Both indicators sent a strong sell signal, suggesting we could see prices break lower in the near term. To confirm this outlook, futures need to close back below the regression line at 5550 and then target 5500. The 40 DMA is closing in and supporting prices from the downside in the longer term. However, a break back above the 5800 level would point to a continuation of the longer-term trend on the upside. The narrow candle body with a longer lower wick points to a lack of appetite on the downside, but the futures need to need to hold above the 10 DMA at 5695 to suggest the outlook for further gains.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as moderate buying pressure prompted a close above at 10491. The stochastics are rising as the %K/%D converged on the upside, highlighting growing buying pressures. The MACD diff is negative and converging. To confirm another bullish candle, futures need to close above the 40 DMA at 10662 and then target 11000. On the downside, the break below the current support level of the 10 DMA at 10329 could set the scene towards 10000. However, the market struggled below the level in recent sessions, and a break below is needed to confirm the bearish outlook in the near term.
Ldn 2nd Month Cocoa Futures
Prices held their nerve yesterday as prices closed just above the 10 DMA level at 8170. The stochastics are rising moderately. The %K/%D is edging higher out of the oversold, and The MACD is negative and converging. The doji candle formation supports market indecisiveness. Prices have been trading in a narrow range, and in order to confirm the change of momentum, prices need to break above the current resistance at 10 DMA at 8153 and then target 8300. Conversely, a break below the 8000 support level could set the scene for a test of 7820. We expect prices to consolidate and remain on the front foot.
