NY 2nd Month Sugar Futures
NY sugar futures opened higher yesterday, breaking above the 10 DMA level. However, market appetite for further gains diminished later in the day, prompting futures to close lower at 18.41. The stochastics have just crossed on the upside and are now rising, sending a strong buy signal, and the MACD diff is negative and converging. On the downside, a break back below the 10 DMA support at 18.33 could trigger losses through 40 DMA at 18.22, with the tertiary level of 18.00. On the upside, a break above 18.50 could set the scene for bullish momentum towards 100 DMA of 19.03. The candle closing lower on the day could be a sign that futures are struggling on the upside; however, the indicators point to accelerating upside momentum. To confirm this, the robust level of 18.50 has to be taken out first.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened higher during the day, but resistance of 519 caused the futures to edge lower later in the day and close at 509.40. The stochastics are about to converge on the upside in the oversold, which would send a strong buy signal. The MACD diff is negative and converging, suggesting waning downside momentum. A break of 10 DMA at 511.21 could trigger losses through 40 DMA at 507. On the upside, a break above previous sessions’ highs at 515 could set the scene for a test of 520, which would suggest a change of trend back for a more bullish momentum.
NY 2nd Month Coffee Futures
NY coffee strengthened yesterday as protracted buying pressure triggered a close on the front foot at 393.75. The stochastics are rising, with %K/%D diverging on the upside. 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 400. This would confirm the trend for rising prices, up to 415. On the downside, a breach of support at 381.40 would strengthen the bearish momentum. This could also trigger losses towards the 40 DMA level at 374.83. Indicators point to higher prices. However, futures need to break above 400 to confirm the outlook.
Ldn 2nd Month Coffee Futures
Ldn coffee strengthened yesterday as protracted buying pressure triggered a close on the front foot at 5552. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is negative and converging. A long bullish candle body with a long upper wick suggests an appetite for higher prices. A break above the 5569 level could set the scene for prices to break the 5700 level. On the downside, a breach of support at 5369 would strengthen the bearish momentum. This would confirm the trend for falling prices, down to the 5100 level. Indicators point to higher prices, but yesterday’s candle suggests that markets could struggle above 5569 in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading caused the market to close below the 100 DMA at 8418 at 8302. The stochastics are holding steady close to the oversold, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the outlook for higher prices, futures need to close back above 100 DMA and then target 10 DMA at 8547. On the downside, the rejection of prices above 8000 could trigger losses back towards 7500. A break below this level would confirm the downward trend. A narrow-bodied candle points to market uncertainty and futures need to break out of current resistance/support to confirm the longer-term outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged lower yesterday as intraday trading caused futures to close at 6406. The stochastics are converging on the downside, with %K/%D now back in the oversold territory, but the MACD is negative and converging, pointing to waning selling pressure. The rejection of prices above 6518 has formed a candle with a longer wick on the downside, suggesting a lack of appetite for higher levels. If prices were to break below 6000, this could trigger a test of 5500 and then 5359. On the upside, futures need to take out the 100 DMA and then robust resistance at 10 DMA. Indicators suggest that futures may stay near the lower end of the trading range in the short term.
