NY 2nd Month Sugar Futures
NY sugar futures were well supported yesterday as protracted buying pressure prompted a close above 14 at 14.12. The stochastics are rising and the MACD diff is negative and diverging. The RSI is rising and to confirm the outlook of higher prices, and yesterday’s full candle, prices need to take out resistance at 14.17. If futures can gain a footing above this level, this could set the scene for a challenge of secondary resistance at 14.50. The market has been well supported at the 40 DMA and this has kept the market on trend. Conversely, rejection of prices at 14.17 could trigger yesterday’s gains to be given back, a break below the 40 DMA would bring into play the 100 DMA at 13.17. The 61.8% fib level at 13.01 is a key level and a breach here would set the scene for lower for a challenge of 50% fib level. Near term momentum is on the upside but prices are below ley resistance, a break of this level and a fresh high from the stochastics would confirm momentum.
Ldn 2nd Month Sugar Futures
Ldn sugar futures were well supported at 400, prompting a break of resistance at 403 and closed above this level at 406.80. The stochastics are rising and are overbought and the MACD diff is positive and diverging suggesting higher prices in the near term. The RSI is also rising and the break above previous resistance outlines strength in the market. In order to confirm the new high, prices need to hold above 403 and then challenge 415. Yesterday’s buying pressure was strong but prices have repeatedly failed above 403. This could trigger losses back towards trend support before the 40 DMA at 388.32, before the tertiary level at 383.43. Near term momentum is on the upside and the break above resistance at 403 yesterday confirms the reaffirmation of support last week. We anticipate prices to improve in the near term.
NY 2nd Month Coffee Futures
NY coffee futures have been supported in recent sessions, forming a three white soldiers pattern. Yesterday’s activity prompted a close above resistance of the 100 DMA at 112.95. The stochastics are rising and are pushing towards overbought territory, but the MACD diff is positive and diverging. The RSI are rising and in order to confirm the hammer candle and the three white soldiers pattern, futures need to break challenge the 50% fib level at 115 and then target the key level at 120. Prices need to hold above 112 today to maintain upside momentum. On the downside, rejection of prices above the 100 DMA could set the scene for lower prices towards 110 once again with the 61.8% fib level the secondary support level at 108.55. The market was well supported at this level in recent weeks. We anticipate prices to remain on the upside in the near term but futures need to take out 115 in order to suggest higher prices.
Ldn 2nd Month Coffee Futures
Ldn coffee futures have been well supported in recent session, and buying pressure promoted a close on the front foot yesterday at 1413. The stochastics are rising and the MACD diff is positive and diverging as the RSI is also overbought, outlining recent buying pressure. Protracted buying pressure has prompted a break of previous trend support, and resistance stands at 1450. The key level on the upside is 1479 before targeting 1500 in the longer term. On the downside, rejection of prices above 1420 may set the scene for correction to 76.4% at 1391.68. A break of this level may trigger a test of 1358. However, near term momentum is on the upside and we expect futures to improve in the near term as buying pressure continues.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower yesterday as intraday trading saw prices were well supported below 2355 and closed at 2356. The indicators are on the upside as the stochastics are rising, the MACD diff is positive and diverging. The downside tail suggests appetite for prices below 2355, this could trigger a test of trend resistance at 2425. Resistance at the 200 DMA is another key level and if this level holds firm we could see prices decline back towards 2300. A break through the recent low would help confirm the outlook of lower prices towards 2200. On the upside, futures need to break above trend resistance and then challenge 2500 in order to regain upside conviction. We expect prices to soften in the near term as selling pressure improves, shown by the converging stochastics.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures consolidated yesterday as intraday trading saw prices tested support at 2082. The market closed at 2112. The stochastics are falling and the MACD diff is positive and converging suggesting waning buying pressure. The RSI is falling and to confirm the rejection of trend resistance, prices need to take out 2049. A break below this level towards 2000 would confirm the descending triangle. Conversely, appetite for prices below 2100 could trigger a test of trend resistance, secondary resistance stands around 2200 where the moving averages are converging. A breach of this resistance band in the medium term could pave the way for higher prices to 2300. We expect futures to decline in the near term towards 2049.
