NY 2nd Month Sugar Futures
NY sugar sold off sharply yesterday, as protracted selling pressure triggered a breakthrough of 15.29 support level, and a close on the back foot at 15.25. The stochastics are falling, with the %K/%D converging on the downside, and the RSI has also edged lower, sending a sell signal. The MACD diff is positive and converging, suggesting waning buying pressures; this could set the scene for lower prices towards the 10 DMA support level at 15.08. A break below this would confirm the trend for falling prices, down to the trend support. On the upside, resistance at 15.80 has proven to be robust in the last couple of sessions, and support above that level would strengthen the bullish momentum. This could also trigger gains towards the trend resistance at 15.95, and then 16.00. We believe that the near term momentum is on the downside.
Ldn 2nd Month Sugar Futures
Lnd sugar futures lost ground yesterday after prices failed into the 435 support level, prompting a close at 434. The stochastics are falling, with %K/%D still in the overbought territory, and the MACD diff is positive and converges as futures failed to confirm the outlook of higher prices after failing into the 440. Futures need to close above 440 resistance and then target a 450 and then a 50% fib level at 460.90 in the long run. On the downside, the long candle suggests increased appetite lower prices in the near term. Prices need to close below 10 DMA at 431.43 before targeting 38.2% fib level at 423.59. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall in the near term.
NY 2nd Month Coffee Futures
NY coffee futures gained ground yesterday; however, the protracted buying pressure triggered a close below yesterday’s lows at 129.25. The stochastics are rising, and the MACD diff has converged on the upside, sending a buy signal. To confirm the improved outlook on the upside, we need to see prices take out resistance at 131 and then the previous day’s high at 133.75. On the downside, apprehension around 10 DMA at 126.21 could trigger losses back towards 76.4% fib level at 125.80, and then 125 to confirm the outlook of lower prices. Upside tails and wicks suggest a lack of appetite for higher and uncertainty in the market.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading caused the market to close at 1348. The stochastics are rising, and the MACD diff is negative and about to cross on the upside, suggesting higher prices in the near term. The RSI is also rising; to confirm the outlook of higher prices, futures need to close back above 1350 and then target 100 DMA at 1358. The 40 DMA is closing in and resisting prices on the upside. On the downside, rejection of prices around 10 DMA at 1334 could trigger losses back towards 1317. A break below this level would confirm the trend on the downside. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 2500 at 2541. The RSI is rising, while %K/%D is diverging on the upside. The MACD diff is positive and diverging, confirming rising buying pressures. On the downside, a break below the key support level of 10 DMA at 2467 could trigger losses back towards 2434, break below the 200 DMA at 2422 would confirm the outlook of lower prices in the longer term. On the upside, a break above the 40 DMA at 2561 could trigger gains through 2600 towards 61.8% fib level at 2612. Long candle body points to more certainty in the bullish momentum, and a break above 40 DMA would confirm the outlook for higher prices.
Ldn 2nd Month Cocoa Futures
Lnd cocoa prices gained ground yesterday appetite for prices above 40 DMA, triggering a close at 2339. The stochastics favour the upside, with the %K stochastic entering the overbought territory, suggesting we could see prices improve in the near term. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and yesterday’s candle suggests we could see prices challenge 2373 in the near term. In the medium term, futures need to hold above 2400 and then the level at 2418. On the downside, a break below the 40 DMA support level at 2311 could trigger losses back to 100 and 10 DMA at 2266. Three white soldiers formation in the previous sessions confirms the outlook or higher prices. We anticipate prices to improve today as buying pressure continues.