NY 2nd Month Sugar Futures
New York sugar futures were well supported yesterday as protracted buying pressure triggered a breach of resistance at 11.20 and closed at 11.30. The indicators are rising and the MACD diff is positive and is starting to diverge once again. The RSI is rising and yesterday’s strong improves the outlook on the upside. The upside trend remains intact but to confirm the upside trend futures need to close above 11.50, this would help confirm the ascending triangle. On the downside, traders have rejected prices above 11.25. Lack of appetite for prices above this level could set the scene for lower prices through trend support to 10.50 in the medium term. However, downside tails suggest lower prices in the near term.
Ldn 2nd Month Sugar Futures
London sugar futures gained ground yesterday as protracted buying pressure triggered a test of resistance at 354.83 and closed at 354.10. The stochastics and RSI are rising and the MACD diff is positive and diverging once again. Resistance at the 38.2% fib level looks set to break with the 100 DMA at 360.17. In the medium term, if futures close the gap this would prompt futures to regain upside conviction in the long run. On the downside, rejection of prices at the 38.2% fib level, futures could retreat back towards the 50% fib level and 344.95. A break below trend support may trigger losses to 331.40.
NY 2nd Month Coffee Futures
New York coffee futures held their nerve yesterday as intraday trading saw prices fail above 100 and closed at 99.75. The stochastics are oversold but also starting to show signs of improvement. The MACD diff is negative but hasn’t diverged in recent sessions suggesting waning selling pressure. The recent sell-off and break out of the symmetrical triangle has affirmed downside momentum. The rejection of prices at 100 yesterday may trigger losses back towards 95.80, a break of this level could trigger losses to 93. On the upside, prices need to gain a footing above 100 and then target trend resistance and 108.55.
Ldn 2nd Month Coffee Futures
London coffee futures gained ground yesterday as appetite for prices at 1173. The market closed at 1198. The stochastics are falling and the MACD lacks conviction as does the RSI. The reaffirmation of support at 1173 could trigger gains through 1200 with the 100 DMA at 1245, helping the outlook on the upside. Conversely, futures have failed above 1200 in recent weeks and this could trigger losses back to 1173.79, a breach of support at this level would trigger losses to 1150.
NY 2nd Month Cocoa Futures
New York cocoa futures buckled yesterday as protracted selling pressure prompted a close on the back foot at 2382. The stochastics are starting to converge and the MACD diff is negative, and the RSI is starting to fall. Yesterday’s bearish candle suggests we could see prices break though the 40 DMA at 2364 to test 2300, we have seen prices supported at this level in recent sessions. On the upside, the 200 DMA at 2493 has held firm in recent weeks and prices need to break above this level in order to regain upside momentum in the long run. If prices hold above previous trend resistance, this could prompt a test of 2493.
Ldn 2nd Month Cocoa Futures
London cocoa futures sold off sharply yesterday, breaking through 1800 and causing a close at 1794. The stochastics are falling, and the MACD diff is negative. The ADX is starting to rise suggesting a strengthening trend on the downside. The bearish engulfing candle suggests that we could see futures break back towards 1750 in the near term. There is a band of support between 1729-1750 and if this holds firm, a triple bottom will be formed. This remains a key level in the downside. On the upside, futures need to gain a footing back above 1815 and then 1850. However, we anticipate prices to weaken in the near term.