NY 2nd Month Sugar Futures
NY sugar futures sold off yesterday after futures failed above the 15.10 level, prompting a close on the back foot at 14.94. The stochastics are falling back towards the oversold territory, and the MACD diff is also diverging on the downside, outlining the weakness in the market. Selling pressure has been strong, and yesterday's close on the low suggests lower prices towards trend support at 14.80.This support level has been robust, and we expect this level to remain to hold. Alternatively, if prices can gain a footing above the 10 DMA level at 15.24, the bulls could then target 15.50 in order to regain upside conviction. We anticipate prices to remain on the back foot in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday after futures tested the 10 DMA once again to close at 428.30. The stochastics are falling towards oversold, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the bearish indicators and rejection of prices above 10 DMA, futures need to take out support at 426 and then target 38.2% fib level at 423.59. On the upside, futures need to close above 10 DMA at 435.60 and then target 440 in order to confirm the outlook of higher prices towards 444. Long upper wick points to lack of appetite for higher prices; however, weakness prevailed during the day. Prices need to take out current resistance at 10 DMA to confirm the outlook for higher prices. We expect futures to weaken in the near term back.
NY 2nd Month Coffee Futures
NY coffee weakened yesterday, and prices closed on the back foot at 125.10. The stochastics are falling, and the RSI has also edged lower, sending a sell signal. The MACD diff is negative, however, lacks the conviction to suggest an outlook. Yesterday’s rejection of key resistance and the close near the suggests growing selling pressures; 40 DMA is the key level that needs to be broken, and this could set the scene for lower prices to break below the 125.80 support level. This would confirm the trend for falling prices, down to the 40 DMA at 124.92. On the upside, resistance at 10 DMA at 127.65 has proven to be strong, futures need to hold above this level to strengthen bullish momentum. This could also trigger gains towards the 23.65% fib level at 129.51. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures sold off once again yesterday as protracted selling pressure triggered a break of support at 1317 before closing at 1313. The stochastics are falling, and the MACD diff is negative and converging, suggesting we could see prices continue to weaken in the near term. The close just off the low and the bearish indicators suggest we could see prices fall further and test 1300 in the coming sessions. The market was well supported above this level in recent sessions, and this triggered the rally back to 1360, and if prices can find support below 1310, then this could prompt a test back of 1300. The bulls need to close above 10 DMA at 1329 in order to gain a foothold in the market and pave the way for higher prices in the longer run. Selling pressure has been strong, and this could trigger further losses in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures gained ground yesterday after prices found support at 200 DMA, this triggered a close at 2457. The stochastics are falling, and the MACD diff is positive, and about to converge on the downside, suggesting we could see futures test support at 200 DMA once again, the ADX is falling on the downside suggesting a weakening trend, and this could prompt a break of current support, setting the scene for lower prices at 38.2% fib level 2414. On the upside, in order to confirm higher prices, futures need to close above the current resistance and 10 DMA at 2486. 100 DMA has been robust, but the prices need to take out 2550 to confirm the outlook for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading caused the market to close at 2279. The stochastics are falling, and the MACD diff is positive and about to cross on the downside, suggesting lower prices in the near term. The RSI is also falling; to confirm the outlook of lower prices, futures need to close back below 100 DMA at 2260 and then target 2250. The 40 DMA is starting to close in and resisting prices on the upside. However, a break above that level could set the scene for 10 DMA at 2299. Two narrow-bodied candles with long wicks 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.