2nd Month NY Sugar Futures
NY sugar futures edged lower yesterday as prices failed above 10.50 prompting a close at 10.38. The stochastics are in negative territory but are starting to bottom out. The MACD diff is positive and starting to improve on the upside. The 10 DMA has provided resistance in recent sessions, and prices need to take out this level to regain upside traction. The upside tails continue to suggest lack of appetite for higher prices but a close above the 10 DMA and then 11.50 in the medium term. On the downside, lack of appetite for prices above 10.50 suggests we could see futures soften back towards 10. To confirm the shooting star, and the descending triangle prices need to close below 10.
2nd Month London Sugar Futures
London sugar futures edged lower yesterday as resistance at the 10 DMA held firm, and prices closed At 324.10. The stochastics are falling, but the MACD diff is positive and starting to diverge. Support at 322.85 at the 76.4% has held strong in recent session. Appetite for prices below this level suggests we could see prices breach resistance at the 10 DMA before taking out the 50% fib level at 344.95. On the downside, futures need to break support at 320 to confirm the descending triangle. This could set the scene for losses to 316 before 303.
2nd Month NY Coffee Futures
NY coffee futures gained yesterday protracted buying pressure prompted a test of 121.50; the market closed at 121.05. The stochastics are starting to converge; the MACD diff is negative. The RSI is starting as well, but prices are below key resistance at 121.50, this resistance level has held firm in recent weeks, prompting a retracement back to 115. However, the reaffirmation of support on Monday could set the scene for higher prices back towards 130 in the long run. The full candle yesterday suggests improving outlook on the upside. On the downside, futures need to close below 115 with secondary support at 110.
2nd Month London Coffee Futures
London coffee futures edged higher yesterday as prices traded a narrow range and closed at 1233. The stochastics are falling, and the MACD diff is positive and diverging on the upside. Prices are trading a narrow range and hold above key support at 1210; this could set the scene for higher prices to 1263. This resistance level has held firm in recent months, triggering a retracement back to 1200. In the long run, prices need to take out resistance at 1323. On the downside, a break of support at 1200 could trigger losses to 1173.
2nd Month NY Cocoa Futures
NY cocoa futures have been well supported in a recent session, buying pressure prompted a close at 2392. The stochastics are rising, and the gap between them suggests that momentum is on the upside. The MACD diff is diverging helping to confirm positive sentiment. Buying pressure could trigger gains through immediate resistance at 2400 towards 2430. Tertiary resistance stands at 2500. On the downside, if prices fail at 2400, this could trigger gains back to 2346 before trend support at 2243.
2nd Month London Cocoa Futures
London cocoa futures gained ground yesterday as buying pressure prompted a close at 1846 helping to confirm the rejection of the descending triangle. The stochastics are surging higher; the MACD diff is positive and diverging on the upside. This gives the market a positive impetus, and we could see futures test support at 1875. If this level holds firm, futures could trigger losses back to 1800 and would keep momentum on the downside. Conversely, a break of this level would set the scene for higher prices to 1927.