NY 2nd Month Sugar Futures
NY sugar futures sold off yesterday to test trend support, however, appetite for prices at this level triggered a close at 11.10. The MACD diff is positive and it is diverging slightly, the stochastics are rising towards overbought. The repeated reaffirmation of appetite below trend support keeps the momentum on the upside, the double hammer candle suggests support for prices. Futures need to take out the double top at 11.30 and then target the more psychological level at 11.50. On the downside, the downside tails are indicated improving selling pressure, futures need to close below 10.80 and then 10.40.
London 2nd Month Sugar Futures
London sugar futures held their nerve yesterday. Prices held above the 50% fib level and closed at 349.10. The stochastics are rising, and the MACD diff is positive but fails to diverge further. The ascending triangle remains intact, and the inverse head and shoulders are nearly confirmed. To confirm both patterns, we need to see a break of resistance at 354.83 and then the 100 DMA at 361.35. On the downside, a break below 335.07 would suggest a rejection of the ascending triangle. We could see prices retreat to 40 DMA at 328.89.
NY 2nd Month Coffee Futures
NY coffee futures edged higher yesterday but once again failed into 108.55. The market closed at 106.65. The stochastics are weak but the %K stochastics is improving. The MACD diff lacks conviction and prices need to break above 108.5 and then target the moving averages around 112.20. Near term resistance has held firm in recent sessions, exemplified by the upside tails. The rejection of prices could trigger losses back through 104.60, before targeting the psychological level at 100. The upside tails indicate lack of appetite for higher prices.
London 2nd Month Coffee Futures
London coffee futures firmed yesterday as appetite for prices prompted a test of resistance at 1252. The market closed at 1242. The stochastics are improving and the MACD diff is positive are diverging on the upside. Near term pressure is on the upside and if futures can break above the 100 DMA at 1252. A break of this level could trigger gains back to 1300 in the medium term. On the downside, a rejection of prices at the 100 DMA could set the scene for lower prices to 1200.
NY 2nd Month Cocoa Futures
NY cocoa futures failed into 2400 yesterday as prices closed at 2355. The %k stochastic is rising and this could trigger a buy signal. The rejection of higher prices may prompt a break back towards 2300, a subsequent breach of this level could trigger losses towards 2228.75. On the upside, a break of 2400 and trend resistance may prompt futures to retest 2488. A subsequent breach of this level would prompt prices to regain upside momentum.
London 2nd Month Cocoa Futures
London cocoa futures sold off yesterday as protracted selling pressure triggered a close at 1822. The stochastics are falling, the MACD diff is negative and a break of the lower trend channel could trigger losses through 1800, with the secondary level at 1750. We have seen support at the lower trend channel in recent weeks and this could prompt futures to take back some of yesterday losses back to 1856. Until the gap is closed, momentum will favour the downside, and after yesterday’s rejection of the 40 DMA, we expect prices to soften today.