NY 2nd Month Sugar Futures
NY sugar futures sold off yesterday as lack of appetite for higher prices helped to break the 17.00 support; the market closed at 16.84. Stochastics converged on the downside while in the overbought, suggesting selling momentum in the near term. MACD diff is positive and converging, supporting the outlook for deteriorating prices. The last two days formed a bearish engulfing pattern, a sign of an impending market downturn. The sell-off yesterday and close near the lows suggest further selling pressure below the current support level and the above-mentioned indicators support lower prices. A break below the 10 DMA level of 16.54 could set the scene for a test of support at 16.12. On the upside, support around 16.50 would help reaffirm the bullish trend in the near term up to trend resistance. We believe that the market lacks conviction, and prices should continue to fall.
Ldn 2nd Month Sugar Futures
Ldn sugar futures sold off yesterday as lack of appetite for higher prices helped to confirm the rejection of higher prices on Thursday, the market closed 453. Stochastics are topping out and are starting to fall out of the overbought territory; the MACD converged on the downside, suggesting lower prices in the near term. The long bearish candle and a test of 10 DMA mean we could see prices edge below that level. A break below 10 DMA at 452.94 could set the scene for a test of support at 449.60 and then the 40 DMA, which is improving. On the upside, support around 445 would help reaffirm the trend on the upside. The key level on the upside is 469.60, and if futures break above this level could set the scene for higher prices higher in the medium term. Indicators point to the end of the bull run, but futures need to break below 10 DMA to confirm the outlook.
NY 2nd Month Coffee Futures
NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 140.05. The RSI is rising, while %K/%D diverging in the overbought. Likewise, the MACD diff is positive and diverging, confirming growing buying pressures. On the upside, finding support above the 140 could trigger gains through 141.50 towards 142.45 – December 2019 highs. On the downside, a break below the 135.45 level could trigger losses back towards 131. The DMAs have been supporting futures prices, and a break of 10 DMA above the 40 DMA sends a strong buy signal. The close near highs that the buying pressure is growing and the bullish outlook is on the horizon.
Ldn 2nd Month Coffee Futures
Ldn coffee prices gained ground yesterday with an appetite for prices above 1471, triggering a close at 1476. The stochastics favour the upside, with the %K/%D stochastic converging on the upside in 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 1480 in the near term. In the medium term, futures need to hold above that level and then target 1493 – July 2019 highs. On the downside, a break below the 1450 support level could trigger losses back to 1420. Yesterday’s candle tested 1479, forming a double top, which means we could see a reversal in trend. The stochastics, however, point to an improvement in momentum, and a break above that level could see prices edge higher in the near term.
NY 2nd Month Cocoa Futures
NY cocoa edged higher yesterday as intraday trading caused futures to test appetite for prices above 61.8% fib level at 2612.97, the market closed below at 2608. Stochastics are rising, with %K entering the overbought territory, confirming positive momentum. The MACD diff is positive and diverging, suggesting growing buying pressure. To maintain positive momentum, prices need to close above 2612 and then target 2644, which is the December highs. On the downside, the rejection of prices above 2600 could trigger losses back to 2553 before targeting 2523. Buying pressure remains strong, and indicators point to additional highs. The reaffirmation of support above 2600 could strengthen the outlook of higher prices.
Ldn 2nd Month Cocoa Futures
Ldn sugar futures gained ground yesterday as buying pressure prompted a test of 2469. The market closed at 2459. The stochastics are trading in the overbought and are about to converge in the near term; the MACD diff is positive and converging, suggesting waning bullish momentum in the near term. Prices have been supported above the 10 DMA level for the last couple of sessions, and if this level proves robust, we could see prices edge higher in the near term. On the downside, a break below 2400 could break the trend and set prices down to 2373 and 2355, respectively. On the upside, a breach above 2467 would bring into play 2500. Prices need to find support above the 2430 level to confirm the bullish momentum.
