NY 2nd Month Sugar Futures
NY sugar futures have firmed in recent sessions as buying pressure has prompted a close at 12.89. The stochastics are rising towards overbought and the gap between the stochastics suggests higher prices. The RSI and MACD diff is positive and diverging suggesting higher prices in the near term. The market needs to close the gap between 12.93 and 12.97 in order to confirm the outlook of higher prices. Secondary resistance stands at 13.50 in the medium term. On the downside, a rejection of higher prices at the 13 could set the scene for lower prices towards 12.35 before the 100 DMA at 11.60. Momentum is on the upside and this could remain in the case in the near term but we anticipate apprehension around 13.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday as intraday trading saw prices fail into 360, the market was supported at the 100 DMA at 351.72. The market closed at 355.50. The stochastics are rising towards neutral territory and the MACD diff negative and is converging suggesting an improving outlook in the market. The reaffirmation of support at the 100 DMA could set the scene for higher prices towards 367.70 before the robust level at the 23.6% fib level where prices have been rejected in recent weeks. On the downside, the bearish engulfing candle suggests that we could see prices buckle in the near term towards trend support. A subsequent breach of this level could trigger losses towards 340. The reaffirmation of trend support last week suggests that we could see prices firm in the near term towards 367.70.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as resistance around 104.50 held firm, prompting a close at 103.20. The stochastics are rising towards overbought and the MACD diff is positive and diverging. The double top at 104.65 could set the scene for lower prices through the 40 DMA at 101.83, secondary support stands at 100. A breach of this level could set the scene lower prices to the recent low around 95. On the upside, the reaffirmation of support at the 40 DMA could set the scene for higher prices towards 106.30 before the 100 DMA at 108.57. Despite yesterday’s candle futures remain on the upside in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened yesterday as futures rejected the 123.6% fib level but closed at 1199 above the 40 DMA at 1197. The stochastics are rising towards the overbought territory, the MCAD diff is positive and diverging suggesting higher prices in the near term. We anticipate resistance at the 100 DMA to hinder gains in the near term but a break of this level could trigger a test of the recent high at 1267. On the downside, a breach of the 40 DMA could trigger losses to the 1173.79, superseding this level we have support at the 50% fib level at 1150. To regain downside conviction futures need to break below 1150.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday after prices failed above 2200. The market closed at 2179. The indicators outline negative sentiment, the stochastics are falling and the towards oversold and the MACD diff is negative. The inverted hammer suggests we could see higher prices towards 2255 and then 2300. The market needs to break above trend resistance at 2363. On the downside, the rejection of prices above 2200 could trigger losses through robust support at 2165 towards 2100. Selling pressure is strong despite yesterday’s buying pressure, but the upside tails suggest a lack of appetite for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures failed into previous trend resistance, and this triggered a close at 1612. The stochastics are falling further into oversold territory, the MACD diff is negative and diverging on the downside suggesting strong momentum. The rejection of lower prices could trigger gains through 1600 towards 1560. A subsequent breach of this level would indicate lower prices in the near term towards 1500. On the upside, prices need to break out previous trend resistance towards 1684. The moving averages are falling but remain far away from price action. We anticipate prices to remain on the back foot in the near term.