NY 2nd Month Sugar Futures
NY sugar futures failed above 15.00 once again yesterday as prices closed at 14.61. The stochastics are falling, with %K/%D exiting the overbought territory. The MACD is positive and converging, pointing to lower prices in the near term. The rejection of higher prices may prompt a break back towards trend support at 14.52, a subsequent breach of this level could trigger losses towards 14.23, confirming the descending triangle. On the upside, a break of the 10 DMA at 14.78 and 15.00 may prompt futures to retest last sessions’ highs at 15.29. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Long upper and short lower wicks point to an appetite for higher prices; however, future needs to break above 10 DMA to confirm the outlook.
Ldn 2nd Month Sugar Futures
London sugar futures edged lower yesterday as protracted selling pressure triggered a close at 419.40. The stochastics are falling, with the %K soon to leave the overbought territory, and the MACD diff is positive and converging. A break of the 10 DMA at 420 could trigger losses through 415, with the secondary level at 414.40. On the upside, a break above last sessions’ highs at 430.60 could set the scene for bullish momentum. After the last session’s market indecisiveness – the spinning top formation – the long candle body points to more downside movement in the near term.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading saw prices close at 123.45. The RSI is falling, and %K/%D is negative and diverging, soon to enter the oversold territory. The MACD diff is negative and diverging, suggesting growing selling pressure. The indicators point to lower prices in the near term and to confirm the rejection of support; prices need to take out the 40 DMA at 122.63. A break below this level towards the 38.2% fib level at 121.50 would confirm the strong bearish momentum. Conversely, appetite for prices above the 125 could trigger a test of resistance of 10 DMA at 125.88; secondary trend resistance stands at 127. A positive doji candle after a bearish candle signals market uncertainty, and narrowing support and resistance DMAs are creating a tight trading range, a break out of which would set the scene for strong momentum. We anticipate prices on the back foot in the near term.
Ldn 2nd Month Coffee Futures
Lnd coffee futures buckled yesterday as protracted selling pressure triggered a close on the back foot at 1302. The stochastics are falling, and %K/%D has given a sell signal, the RSI is also falling. The MACD diff is negative and diverging confirming growing selling pressure; this could set the scene for lower prices towards the 50% fib level at 1294. A break below this level would confirm the outlook of lower prices. On the upside, a break above 1331 resistance level and reaffirmation of support above 61.8% fib level at 1337 could strengthen the trend on the upside in the long run. Futures need to take out the DMAs in order to confirm the outlook of higher prices. The 10 DMA crossed below the 40 DMA and now the 100 DMA, confirming the outlook for more downside momentum.
NY 2nd Month Cocoa Futures
NY cocoa futures consolidated yesterday after prices found support above 2434, prompting a close at 2448. The stochastics are falling into the oversold territory; the MACD diff is negative and lacks conviction. The ADX and DMI are converging on the downside, confirming the outlook for lower prices. The reaffirmation of support at 10 DMA at 2476 could trigger gains towards 2500 before targeting 2515. On the downside, a break below the 200 DMA at 2418 could see prices test the 2400 level. We expect prices to remain within the recent range today and test appetite around 2448.
Ldn 2nd Month Cocoa Futures
Lnd cocoa futures gained ground yesterday as buying pressure prompted a close on the front foot at 2235. The stochastics are rising, with %K/%D about to converge on the upside; the MACD negative and converging, highlighting the outlook for a change of trend in the near term. Resistance at 10 DMA has held firm in recent weeks, and this could trigger gains to 100 DMA at 2262, with secondary resistance at 2278. On the downside, a break below 2200 support level may set the scene for a correction to the downside. A break of that support could pave the way for lower prices through 2179. Near term momentum is on the upside, a break above 10 DMA is needed to confirm the outlook.