NY 2nd Month Sugar Futures
NY sugar futures failed above 14.50, and this triggered a close at 14.38. The stochastics are rising and the MACD diff is positive and diverging suggesting we could see higher prices in the near term. The DMI and ADX are starting to rise suggesting higher prices in the near term. Yesterday’s shooting star candle and rejection of higher prices could trigger losses back towards 14.20 before 14, the tertiary support level stands at 13.74. On the upside, buying pressure has been robust in recent weeks but prices need to gain a footing above 14.50 in order to set the scene for higher prices towards 15. We expect prices reaffirm support at 14.17 then this could set the scene for higher prices in the medium term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures failed once again into 410 once again yesterday, this triggered prices to edge lower and close at 403.90. The stochastics are starting to converge in overbought territory, the MACD diff is negative but lacks conviction, and the RSI is falling suggesting we could see lower prices. The rejection of higher prices and resistance at 410 suggest we could see prices break below the 400 in the near term. The stochastics are set to give a sell signal and this could trigger lower prices towards the 40DMA at 390.96 before the 383.43 which is also the 61.8% fib level. On the upside, the reaffirmation of support at 400 could trigger gains back to 410. Futures need to hold above 410 in order to confirm the outlook of higher prices towards 415.90. The trend is firmly on the upside but prices could soften and test previous trend support at 395.
NY 2nd Month Coffee Futures
NY coffee futures have been well supported in recent sessions as protracted buying pressure prompted a test of resistance at 38.2% fib level. Yesterday’s activity saw the market close at 119.50. The stochastics are rising into overbought territory and rising as the MACD diff is diverging, the RSI is rising in overbought territory. Upside momentum is strong and the market recovered well yesterday from early selling pressure, but the market needs to take out resistance at 120 and then the 38.2% fib level at 121.50 in order to suggest a change in trend and move towards 130 in the longer term. On the downside, apprehension amongst traders could trigger losses back to 117 before the 50% fib level at 115. We anticipate prices to remain on the front foot in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures reversed the previous day’s activity yesterday as intraday trading caused futures to close on the back foot at 1416. The stochastics are falling and the MACD diff is converging on the upside suggesting we could see prices retreat in the near term back to 1400, with support at 76.4% fib level at 1391. There is a sell signal from the stochastics on the horizon and a break below 1390 would to confirm this pattern and trigger losses towards 1356, where trend support stands. The market has been well supported at this level previous and we expect the market to hold at this level. On the upside, if prices are supported at 1400 this could trigger gains towards 1450 with the key level on the upside at 1479. The indicators are starting to wane and this may trigger a moderate correction, conversely, break above resistance could trigger gains to 1479.
NY 2nd Month Cocoa Futures
NY cocoa futures were well supported yesterday as protracted buying pressure prompted a test of resistance at the 50% fib level. The stochastics are rising, the MACD diff is diverging on the upside and the RSI is also rising, indicating higher prices. Resistance at the 50% fib level has held firm in recent months, a break of this level would confirm the recent buying pressure and this could trigger gains towards 2590. The long term target on the upside is 2694. On the downside, a rejection of prices at the 50% fib level could trigger losses back to 2420 before targeting 2353. In order to regain downside momentum, prices need to break below 2250 and then target 2200. Near term momentum is on the upside and we expect the market to push higher as buying pressure remains strong.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures have firmed in recent sessions as buying pressure prompted a close at 2256. The stochastics are rising and are overbought but the MACD diff is positive and diverging suggesting higher prices in the near term toward 2300. The DMI is positive and outlines the strengthening trend on the upside. The RSI is on the front foot as well, buying pressure has brought into play resistance at 2300. A break above 2300 would help to confirm the outlook of higher prices towards 2400 in the medium term. Conversely, on the downside a rejection of prices at 2300 may set the scene for lower prices back towards 2180 with previous trend resistance at 2100. We expect prices to improve in the near term but a break of 2300 would help to confirm that move.