NY 2nd Month Sugar Futures
NY sugar strengthened yesterday as buying pressure triggered a close on the front foot above 19.50 at 19.65. The stochastics are rising, with %K/%D diverging on the upside further into the overbought. The MACD diff is positive and diverging on the upside. A long bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 19.70, but prices have struggled above that level in recent days. A breach of this level would confirm the trend for rising prices up to 20.00. On the downside, a break back below 19.21 would strengthen the bearish momentum. This could also trigger losses towards the 10 and 100 DMA at 19.00. Indicators point to higher prices, but with prices failing above current resistance, futures are capped on the upside.
Ldn 2nd Month Sugar Futures
Ldn sugar strengthened yesterday as protracted buying pressure triggered a close on the front foot at 548.90. The stochastics are rising, with %K/%D diverging on the upside in the overbought. The MACD diff is positive and diverging. A long bullish candle body with a longer lower wick suggests an appetite for higher prices; this could set the scene for futures to target 550 once again today. A breach of this level could also trigger gains towards 560. On the downside, a breach of support at 540.20 could strengthen the bearish momentum. This would confirm the trend for lower prices, down to the moving averages area. Indicators point to higher prices, and with the 10 DMA crossing above the 100 DMA – a golden cross- we see further bullish incentives for prices to remain elevated. To suggest further gains, the resistance at 550 is crucial.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as prices held firmly above the 381.40 support level, closing at 385.35. The stochastics are suggesting growing buying pressures in the near term, with %K/%D rising out of the oversold. The MACD diff is negative and converging, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above the 10 and 40 DMAs at 385. 50, which could set the scene for futures to take out the critical 400 level. On the downside, the market needs to take out support at 381.40 before targeting the trend support, currently at 375. The candle found support above 381, but a long upper wick signals a lack of appetite above the DMA levels. If the futures break above these levels, we could see prices edging higher in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw prices close at 5497. The K/%D is rising. The MACD diff is negative and about to converge on the upside, suggesting further appetite for higher prices. To confirm this, futures need to break above the 5569 level to trigger the momentum. A break above this level towards resistance at 5575 would confirm the growing bullish momentum. Conversely, appetite for prices at the 10 DMA level at 5468 could trigger a test of support at 5369. A long-legged doji candle shows indecision about either direction; the length of the wicks also points to increased volatility during the day. The indicators point to a rise in prices in the near term, but futures need to close above 5569 to confirm this.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday, as intraday trading saw prices close at 8102. The stochastics remain oversold but are seen converging on the upside, and the MACD diff is positive and diverging. A break of the 8000 support level could trigger losses for new lows. On the upside, a break back above 10 and 100 DMAs at 8156 and 8409, respectively, could set the scene for bullish momentum towards 9000. In recent days, prices have struggled to breach these levels, and the spinning top formation indicates uncertainty for higher prices. Prices are likely to remain rangebound in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened yesterday after closing below 10 DMA at 6266. The stochastics are rising out of the oversold territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through resistance at 6518. A break above this level would bring into play the 100 DMA at 6616. On the downside, futures need to break the 6000 level. A break below this level could trigger losses to 5359 – an October 2024 low. The longer upper wick points to a lack of appetite on the upside, suggesting the futures’ gains might remain capped in the near term.
