NY 2nd Month Sugar Futures
NY sugar futures edged lower yesterday after prices failed at near term resistance and closed at 10.01. The indicators lack conviction but favour the downside. The MACD diff is converging in positive territory suggesting a weakening outlook for lower prices. Futures prices remain below key resistance keeping momentum on the downside. In order to confirm the inverted hammer candle, prices need to back above near term resistance and then the previous upper bound of the pennant. Superseding this level, resistance stands at 11, the 40 DMA is closing in fast. Reaffirmation of resistance could set the scene for lower prices through the recent low at 9.77. Yesterday’s inside day suggests a continuation of the recent trend.
Ldn 2nd Month Sugar Futures
London sugar futures buckled yesterday as lack of appetite for prices above 325 triggered a close at 314.80. The stochastics are falling into overbought, as the MACD diff converges and looks set to cross to negative territory compounding selling pressure. Trend resistance has held firm and this could trigger lower prices through 310 to 302. On the upside, if support at 310 holds firm futures need to take out-trend resistance and then target 335 at the 61.8% fib level. Second resistance at the 50% fib level 345, the 40 DMA has closed and is expected to provide resistance.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday after intraday trading prompted a test of support at 115. This level held firm and futures closed at 112.40. The stochastics are falling towards oversold and the MACD diff is diverging on the downside suggesting lower prices. The rejection of prices at 115 could set the scene for a test of support at 108.55. Conversely, to confirm the inverted hammer prices need to close above 115.87 and then target 121.50. We expect futures to remain range-bound in the near term but the upside tails suggest improving buying pressure.
Ldn 2nd Month Coffee Futures
London coffee futures firmed yesterday as appetite for prices below the lower trend channel prompted a close at 1150. The MACD diff is positive and this could trigger gains through previous trend resistance towards 1183. Secondary resistance stands at 1200 before 1235. The RSI is showing signs of improvement and yesterday’s full candle should set the scene for higher prices. However, rejection of prices at 1155 could trigger losses back towards 1100. Upside moves have been sold into, keeping momentum on the downside.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as prices failed into the 40 DMA. The market closed at 2385. The stochastics are rising and the MACD diff is positive and starts to improve on the upside. The rejection of prices at the 40 DMA could prompt futures to edge back towards 2307. If support at this level holds firm, this could set the scene for higher prices through 2400 with the upside target 2493. Futures have failed to break out of the recent consolidation range but the indicators are positive and suggest higher prices.
Ldn 2nd Month Cocoa Futures
London cocoa futures consolidated yesterday but prices failed above 1900 and prompted a close at 1892. The indicators suggest higher prices in the near term. The stochastics and MACD diff improves on the upside but futures need to take out immediate resistance at 1900 and then 1927 in order to confirm the double bottom. Rejection of prices at this level could trigger losses through 1875 to 1841. To confirm the recent band of resistance 1884 and 1927 prices need to break 1800 and 1729 in the long run.
