NY 2nd Month Sugar Futures
NY sugar futures edged higher yesterday, breaking above resistance at 16.50 and closing at 16.59. The stochastics are trading in the overbought territory, and the MACD diff is positive and diverging, outlining recent bullish sessions. On the upside, futures need to break completely above 17.00 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the trend resistance at 17.28; this could strengthen the trend in the long run on the upside. A break back below the current support at 16.00 would bring into play the 10 DMA level at 15.83, which could set the scene for support at 15.50. We see prices edge higher in the near term, highlighted by recent bullish momentum and positive indicators, however, futures need to close above the current resistance to confirm the outlook for higher prices.
Ldn 2nd Month Sugar Futures
Ldn sugar futures consolidated yesterday as buying pressure broke resistance at the 10 DMA, triggering a close at 453.70. The stochastics are falling, with the %K/%D about to converge on the downside, outlining the deterioration in positive sentiment. The MACD, however, is negative and converging on the upside. In order to confirm another candle on the upside, the candle needs to break completely above 10 DMA at 449.83 today, which could pave the way for a test of 461 resistance level – the recent week's high. On the downside, a break below 440 could trigger further losses towards the 40 DMA at 432.72. A breach of this level would confirm the downside trend. A close back above yesterday's highs today would confirm the continuation of upside conviction and pave the way for further gains.
NY 2nd Month Coffee Futures
NY coffee futures gained ground yesterday as buying pressure triggered a close on the front foot at 129.30. The stochastics are rising with the %K/%D diverging towards the overbought area, as the MACD diff converged on the upside – a clear buy signal. This suggests we could see higher prices in the near term towards 130, but the market needs to take out immediate resistance of 23.6% fib level 129.51. A test of 131 resistance level would confirm a triple top candle formation. On the downside, the candle found support at previous day's close at 127.40, and if the prices break through this level, we could see prices retreat back through the 40 DMA at 126.37 before 126. The three white soldier formation is a bullish signal, but futures need to take out the longer-term resistance at 131 in order to confirm the outlook on the upside.
Ldn 2nd Month Coffee Futures
Lnd coffee futures gained ground yesterday as buying pressure prompted a close on the front foot at 1380. The stochastics are rising, with %K/%D converging on the upside in the overbought territory, the MACD positive and diverging, highlighting the outlook for a continued positive trend. Resistance at 23.6% fib level at 1385.57 has held firm in recent weeks, and this could trigger gains to 1395. On the downside, a break below 10 DMA support level at 1365 may set the scene for a correction to the downside. A break of that support could pave the way for lower prices through 1360. Near term momentum is on the upside, and we expect to see futures trade higher.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at 38.2% fib level at 2414.03. This level held firm, and the future closed at 2391. The stochastics are falling, with %K trading in the oversold, and the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 2355, which could set the scene for futures to test 2365. On the upside, the market needs to take out resistance of 2374, which is the previous day's closing price, and then resistance at 10 DMA at 2435. Wednesday's candle broke out of the recent channel, however, long upper wick points to lack of appetite back above 2414. Futures need to close below the previous day's candle today to confirm the outlook for lower prices.
Ldn 2nd Month Cocoa Futures
Lnd cocoa held the nerve yesterday as intraday trading caused futures to close at 2280. RSI is rising marginally, and %K/%D falling and diverging, confirming the continuation of the negative trend. The MACD diff lacked conviction. On the upside, prices need to close above 10 DMA at 2286 and then target 2300 before 2327, which is the last weeks' highs. On the downside, the rejection of prices above 10 DMA could trigger losses back to the 40 and 100 DMA levels at 2273 and 2254, respectively. Buying pressure yesterday was weak, and indicators point to growing selling pressures. The doji candle confirms market uncertainty. The break of support at 40 DMA could confirm the outlook for lower prices in the near-term.
