NY 2nd Month Sugar Futures
NY sugar futures edged higher yesterday as intraday trading saw prices tested resistance at 15.29. The market closed lower at 15.18. The RSI is rising, and %K/%D is diverging out of the oversold territory. The MACD diff just converged on the upside, pointing to a strong buy signal. The indicators point to higher prices in the near term, and to confirm the bullish trend, prices need to break above 15.29 and then target 15.50. A break above these levels towards trend resistance at 15.61 would confirm the strong bullish momentum. Conversely, appetite for prices below the 100 DMA level at 15.01 could trigger a test of 10 DMA at 14.91, secondary support stands at 14.52. A break of 10 DMA below the 100 DMA level signals the outlook for lower prices, but we believe that prices will be supported above the 100 DMA today.
Ldn 2nd Month Sugar Futures
Ldn sugar strengthened yesterday, as protracted buying pressure triggered a close on the front foot at 428.60. The stochastics are rising, with %K/%D is diverging on the upside out of the oversold. The MACD diff is negative and converging. A narrow bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the trend resistance at 429.38, but prices struggled above that level. This would confirm the trend for rising prices, up to the 23.6% fib level 429.50. On the downside, a breach of support at 420 would strengthen the bearish momentum. This could also trigger losses towards the 410. Indicators point to higher prices, but with prices failing above the trend resistance, futures are capped on the upside.
NY 2nd Month Coffee Futures
NY coffee futures consolidated yesterday as protracted buying pressure triggered a close on the front foot above 10 DMA level at 129.75. The RSI is rising, and %K/%D is diverging on the upside. The MACD diff is negative and about to converge on the upside, suggesting growing buying pressure. The indicators point to higher prices in the near term, and to confirm the rejection of the support; prices need to take out 40 DMA at 130.27. A break above this level towards 131 would confirm the strong bullish momentum. Conversely, appetite for prices below the 38.2% fib level at 121.50 could trigger a test of support at 120. Long upper wick points to increased appetite on the upside, and a break above 40 DMA would confirm the outlook for higher prices.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged higher yesterday as intraday trading saw prices tested resistance at 1376. The market closed at 1369. The RSI is rising, while %K/%D is about to converge on the upside in the oversold. The MACD diff is negative but lacks the conviction to confirm the outlook. On the downside, a break below the key support level of 1340 could trigger losses back towards 38.2% fib level at 1332.72, a break below 1317 would confirm the outlook of lower prices in the longer term. On the upside, a break above the 10 and 100 DMA levels at 1371 and 1374, respectively, could trigger gains through 1385 towards 40 DMA resistance at 1395. The futures need to take out the 1376 level to confirm the outlook for rising prices.
NY 2nd Month Cocoa Futures
NY cocoa futures failed above the previous day’s highs yesterday as intraday trading caused futures to close at 2384. The stochastics have softened, with %K/%D about to converge on the downside, and the MACD diff is negative and converging. The rejection of prices at 2434 and a break below 2400 suggests an appetite for lower prices. If prices were to break back above Monday’s highs, this could trigger a test of 2450 and then 100 DMA at 2461. To confirm another bearish candle, futures need to take out 2355 and then robust support at 2350. A break below this level would confirm the outlook for lower prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged lower yesterday after futures broke below 2277 to close at 2267. The stochastics are trading in the oversold, and the MACD diff is negative, suggesting perseverance of lower prices in the near term. To confirm the bearish indicators and rejection of prices above 50% fib level at 2301, futures need to take out support at 2250 and then target trend support at 2239. On the upside, futures need to close above 10 DMA at 2307 and then target 100 DMA at 2332 in order to confirm the outlook of higher prices towards 2355. Long upper wick points to an appetite for higher prices; however, weakness prevailed during the day. Prices need to take out current resistance to confirm the outlook for higher prices. We expect futures to weaken in the near term back.