NY 2nd Month Sugar Futures
NY sugar futures gained ground yesterday as intraday trading saw prices supported towards 12.35. The market closed at 12.83. The stochastics are rising towards overbought territory, the MACD diff positive and starting to diverge on the upside suggesting higher prices. Appetite for prices towards support 12.35 and yesterday’s candle suggests higher prices in the near term towards 13. A close above 13 would prompt futures to regain upside momentum. On the downside, apprehension amongst traders around 13 could trigger losses back to 12.35 and if futures break back below this level secondary support stands at the 100 DMA around 11.62. We anticipate prices to strengthen in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures were bid yesterday as buying pressure prompted a test of support at the 40 DMA. The market closed at 353.40. The stochastics are rising towards neutral territory, and the MACD diff is negative but starting to converge suggesting a stronger outlook on the upside. Appetite for prices below trend support and the 100 DMA has kept the symmetrical triangle, prices need to gain a footing above the 40 DMA and then 360 before targeting trend resistance. On the downside, if futures continue to fail above the 40 DMA this could trigger losses back through trend support and the 100 DMA. To regain downside conviction, futures need to take out 345 and 340 in order to regain downside conviction.
NY 2nd Month Coffee Futures
NY coffee futures took back some of the previous day’s losses, as buying pressure prompted a close back above 100. The stochastics trending higher but the bearish engulfing candle on Monday increased downside impetus. The MACD diff is positive and yesterday’s close suggests higher prices in the near term. The double bottom needs to be confirmed and if prices break above the 40 DMA and then the 104.65 would prompt futures to regain upside conviction. The bearish engulfing candle has kept prices on the downside and outlined the threat of selling pressure. The recent low around 95 is still intact and a breach of this level would confirm the downside trend.
Ldn 2nd Month Coffee Futures
Ldn coffee futures were well supported around 1150 once again, prompting a close at 1191. The stochastics are rising and the MACD diff is positive, the RSI is neutral which is indicative of the recent consolidation between 1150 and 1200. Yesterday’s downside tail suggests support for prices at 1150, and the reaffirmation of support at this level could trigger gains through 1200 towards the 100 DMA at 1217. We expect this level to provide resistance in the near term and a breach above this level would prompt futures to regain upside conviction. On the downside, selling pressure remains a threat and a break of this level would regain downside conviction.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as prices failed at support and resistance. The stochastics continue to fall further into oversold as the MACD diff is negative and diverging. Yesterday’s doji helps to confirm the uncertainty indicated by the spinning top the previous day. The market has held above previous trend support, a break of this level could see futures test robust support at 2100. Momentum is firmly on the downside and this looks set to continue in the near term, however, if support holds firm this could trigger a close back above 2200. Secondary resistance at the 10 DMA at 2233, with the key level on the upside at trend resistance.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures consolidated yesterday as prices closed at 1583. The stochastics are falling towards oversold and the MACD diff is negative but is starting to consolidate. The recent consolidation suggests waning selling pressure, and the DMI is narrowing helping to confirm less selling pressure. If futures continue to consolidate above key support, this could trigger a break back above 1600 and then previous trend resistance. The medium-term level is 1684 and futures need to take out this level in order to confirm the outlook. On the downside, futures need to take out support at 1560 in order to regain downside conviction.