NY 2nd Month Sugar Futures
NY sugar futures buckled yesterday, selling pressure triggered a breach of support at 10 to test appetite at 9.75. The market closed at 10.01. The MACD diff is positive is converging on the upside, the RSI and stochastics are falling suggesting lower prices. The break out of the pennant on the downside could trigger losses to 9.50. We anticipate this level to hold firm. On the upside, the market was well supported yesterday below 10 and this could set the scene for higher prices to 10.50. Prices need to gain a footing above this level and then 11 in order to confirm the outlook on the upside. Momentum is on the downside and we expect this to remain the case in the immediate term.
Ldn 2nd Month Sugar Futures
London sugar futures softened yesterday to test 312, support at this level prompted a close at 314.60. The MACD diff is converging on the upside, the RSI and stochastics are falling suggesting lower prices. On the downside, protracted selling pressure could trigger lower prices to test 303 at the 100% fib level. The break of 320 has helped to confirm the descending triangle. On the upside, support for prices at 312 may set the scene for higher prices back above 320. In order to regain upside conviction the market needs to gain above 335 and then the 50% fib level at 344.95. We expect prices to remain on the back foot in the near term.
NY 2nd Month Coffee Futures
NY coffee futures sold off yesterday as protracted selling pressure prompted a close at 111.50. The stochastics are falling towards oversold and the gap between the stochastics suggests downside momentum. The MACD diff is negative and diverging on the downside suggesting lower prices. The full candle outlines negative momentum and this could trigger tests to 110 with secondary support at 108. Superseding this level, support stands at 103. On the upside, futures need to close back above 115 to regain upside momentum. The key level is 121.50 and futures need to breach this level to outline positive sentiment. A break out of the symmetrical triangle on the upside could trigger gains to 140 in the long run.
Ldn 2nd Month Coffee Futures
London futures sold off yesterday prompting a breach of support at 1145 at the 150% fib level. The DMI and ADX are rising on the downside but the MACD diff is diverging on the downside suggesting lower prices. Futures closed below 1145 and the full candle suggests downside pressure. The trend is firmly intact but prices have been well supported around 1145 in recent months and this should set the scene for higher prices towards 1200 but rallies have been sold and this could cap gains on the upside. The upper trend channel has presented resistance in recent years and we expect this level to hold firm.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower as yesterday but were supported at 2300. The market closed at 2318. The MACD diff is positive but it is starting to soften. Support at 2300 could trigger gains to 2400 where the 40DMA has closed in and we expect this to provide robust resistance in the near term. On the downside, rejection of prices above previous trend support could set the scene for lower prices back through 2275. Robust support at 2000 has held firm and a breach of this level may trigger a break to 2100 in the long term.
Ldn 2nd Month Cocoa Futures
London cocoa futures consolidated yesterday as intraday trading caused prices to test support and resistance. Prices closed at 1842. The indicators are starting to improve on the upside as the stochastics test overbought territory. The MACD diff is positive and diverging suggesting we could see higher prices break resistance at 1880. Secondary resistance stands at 1900 and then 1927. The reaffirmation of resistance could set the scene for lower prices through 1800 and then 1729. A breach of 1729 would confirm downside momentum.