NY 2nd Month Sugar Futures
NY sugar prices reversed the previous day’s action yesterday. The market closed at 11. The stochastics are rising towards overbought but the MACD diff is positive and activity remains above trend support. There is a double top at 11.30 and to confirm this level, futures need to break below the trend support and test 10.44. If prices close below trend support today, this would help confirm the dark cloud. On the upside, the close at 11 could set the scene for higher prices. Futures need to take out 11.30 and then 11.50 to confirm upside momentum, a breach of 11.50 would help confirm the ascending triangle. The band of resistance at 11-11.50 could set the scene for lower prices.
London 2nd Month Sugar Futures
London sugar futures softened yesterday, prices failed above the 50% fib level and closed at 344.20. The stochastics are elevated around the overbought territory, they are converging on the upside. The MACD diff is positive and diverging on the upside. Prices have remained above trend support but prices need to close above the 50% fib level. Secondary support stands at 354.83 if futures break above this level this would help to confirm the inverse head and shoulders. On the downside, lack of appetite for prices above the 50% fib level, futures could break back below trend support. Secondary support stands at 320.
NY 2nd Month Coffee Futures
NY coffee futures have weakened in recent sessions, prices sold closed 106.30. The stochastics are falling but the MACD diff lacks conviction. The market has been well bid around trend support and this could support prices today, a break of trend support would confirm the rejection of 110. A break of trend support could prompt a test of support 100. The reaffirmation of support could prompt some upside, however, futures need to break above 110 and then target the moving averaged around 113. The moving averages are falling and we expect them to provide resistance in the medium term. The long term pattern symmetrical triangle remains intact but prices need to take out near term trend resistance.
London 2nd Month Coffee Futures
London coffee futures consolidated yesterday as appetite for prices at 1173.79 and the market closed at 1189. The indicators are rising, the stochastics are positive and rising and the MACD diff is positive and diverging. The reaffirmation of support at the 1173.79 could set the scene for higher prices through the upper trend channel and the 40 DMA, a breach of this level would help confirm the hammer candle. The trend channel has remained intact but a break at 1200 and a challenge of 1250, in the long run, would improve upside sentiment. On the downside, rejection of prices at the 40 DMA has triggered losses back to 1150.
NY 2nd Month Cocoa Futures
NY cocoa futures buckled yesterday as protracted selling pressure prompted a close at 2315. The stochastics are falling towards oversold and the MACD diff is negative and diverging on the downside suggesting lower prices in the near term. Yesterday’s full candle in conjunction with the weak indicators could set the scene for lower prices towards 2240, secondary support is at 2200. On the upside, prices need to gain a footing above the 40 DMA and then 2400 in order to regain upside momentum. We anticipate prices to weaken in the immediate term.
London 2nd Month Cocoa Futures
London cocoa futures weakened yesterday as selling pressure triggered a test of support at the lower trend channel. The market closed at 1823. The stochastics are falling towards oversold and the MACD diff is negative and diverging suggesting lower prices. The ADX lacks conviction and support at the lower trend channel could trigger a test of resistance at 1865. Secondary resistance stands at 1900 and 1950. On the downside, prices need to break below the lower trend channel. Futures have been well supported between 1800 and 1730 in recent months. We anticipate the market to weaken in the near term.