NY 2nd Month Sugar Futures
NY sugar prices gained ground yesterday appetite for prices above 15.79, triggering a close at 15.92. The stochastics favour the upside, with the %K stochastic converging on the upside while about to enter 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 16.10 in the near term. In the medium term, futures need to hold above that level and then target 16.12 – last week’s highs. On the downside, a break below the 10 DMA support level at 15.61 could trigger losses back to 15.50. The candle’s close above previous day’s highs confirms that there is an appetite for higher prices. We anticipate prices to improve today as buying pressure continues.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday as intraday trading caused the market to close at 437.40. The futures broke below 10 DMA support level on Monday, yet still managed to close the day on the front foot. The stochastics are falling out of the overbought, and the MACD diff is negative and diverging, highlighting recent downside movement. To confirm the bearish indicators, futures need to break below the support at 40 DMA at 429.90, before targeting 427.60. A break below this level would confirm the trend on the downside. On the upside, to confirm the outlook of higher prices, futures need to close back above 440 and then target 10 DMA once again at 448.73. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and the 40 DMA support remains robust, we could see prices edge up in the near term.
NY 2nd Month Coffee Futures
NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 10 DMA at 126.20. The RSI is rising, while %K/%D has converged on the upside. The MACD diff is negative and converging, confirming rising buying pressures. On the downside, traders rejected prices above the 40 DMA yesterday and this could prompt a break below the key support level of 123. Protracted selling pressure could trigger losses back towards 61.8% fib level of 119.82, break below the 100 DMA at 118.86 would confirm the outlook of lower prices in the longer term. On the upside, a close above the 40 DMA at 126.26 could trigger gains through 127 towards 23.6% fib level at 129.51. Long candle body points to more certainty in the bullish momentum, and a close above 40 DMA would confirm the outlook for higher prices.
Ldn 2nd Month Coffee Futures
Ldn coffee edged higher yesterday as intraday trading caused futures to test appetite at 1371, the market closed below at 1363. Stochastics are falling, and %K/%D converged on the downside in the overbought territory, confirming a change of trend in the near term. The MACD diff is positive and converging, suggesting waning buying pressure. To maintain pennant continuation pattern, prices need to close above 1376 – recent weeks’ highs - and then target 1380. On the downside, the rejection of prices above 10 DMA at 1360 could trigger losses back to 40 and 100 DMA at 1349 and 1346 respectively. Buying pressure remains weak, the indicators point to an end of the bullish momentum, and the doji candle confirms market uncertainty. A break below 10 DMA would help confirm the change of trend.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower yesterday as prices failed above 40 DMA and then closed below at 2428. The indicators are favouring the downside; the stochastics are falling, with %K/%D converging on the downside and edging close to the oversold area, and the MACD diff is negative and diverging on the upside, confirming further selling pressures. A close below the 38.2% fib level at 2414.03 would bring into play the support at 2400. On the upside, prices need to find support above 40 DMA at 2475 and the previous week’s high at 2520. Indicators point to further bearish momentum, however, prices have struggled to break out of the current support/resistance, and a break out of these levels would set the scene for a trend change.
Ldn 2nd Month Cocoa Futures
Ldn cocoa sold off yesterday as selling pressure prompted a test of support at 10 DMA. The market closed at 2288. The stochastics are falling, with %K/%D converging on the downside and the MACD diff is still lacking conviction. Yesterday’s full candle suggests a strong appetite for lower prices, and we could see futures continue to edge lower in the near term down to 40 DMA at 2270. Secondary support stands at 100 DMA at 2255, with that level holding firm in recent weeks. Conversely, support around 10 DMA could set the scene for higher prices back to the 2327 level. A break above that level would help to gain upside conviction. We believe that there is an appetite for lower prices in the near term.
