NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday, causing the market to close at 17.58. The stochastics are rising, with %K/%D converging on the upside, and the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close back above 17.66 and then target 17.79, the recent highs. The 10 DMA is closing in and supporting prices on the downside. However, a break below that level could set the scene for 17.00 and then 16.85. The narrow candle body with long upper and lower wicks points to market uncertainty about the direction of the move, and prices need to break out of current resistance/support to confirm the near-term outlook.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday as prices closed at 466.50. The indicators continue to favour the upside, however, converging, with %K/%D crossing on the upside and MACD diff positive and diverging, suggesting growing buying pressures. A break below the 10 DMA at 459.93 would bring into play the recent sessions' support level at 449.60. Prices have been well supported above the trendline, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 470 and then target the recent highs of 476.20 in the near term. The hanging man candle formation suggests that while there was a sell-off during the day, buyers had an appetite for higher prices. The break above the resistance level, however, would confirm the ascending triangle formation.
NY 2nd Month Coffee Futures
NY coffee futures rallied yesterday, reaching 2017 highs, and managed to close above the previous resistance of 150 at 154.30. The stochastics are rising into the overbought once again, with %K/%D converging on the upside, and the MACD diff is positive and diverging, prompting further buying pressure. We expect futures to remain supported in the near term, with near term resistance at 155.40 and secondary level at 158.25 if buying pressure persists. On the downside, if futures fail into 146.95, then we could see a break back below the 145 before the 10 DMA support of 144.28. We expect futures to remain elevated in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures gained ground yesterday as buying pressure triggered a close on the front foot at 1547. The stochastics are rising with the %K/%D remaining in the oversold area, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards 1560, but the market needs to take out immediate resistance of 1550. On the downside, the candle found support in line with the previous day’s closing price, and if prices break through this level, we could see them retreat back through 1479 before 10 DMA at 1466. The three white soldier formation is a bullish signal, but the long lower wick yesterday points to uncertainty above the current resistance of 1550.
NY 2nd Month Cocoa Futures
NY cocoa consolidated yesterday after prices failed above 10 DMA, this triggered prices to close at 2413. The stochastics are rising near the oversold, and the MACD diff is negative and converging, improving the outlook on the upside. Yesterday's candle suggests a lack of appetite above 2414, and we saw prices fail into 2400 later on the day. Futures need to hold above 10 DMA at 2427, and this could trigger gains towards 40 DMA at 2452. Prices need to hold above this level to regain upside conviction. On the downside, reaffirmation of resistance at the 38.2% fib level at 2414 would confirm the trend on the downside, but prices need to take out the recent low of 2317. Both upside tails suggest market uncertainty, but the indicators point to further bullish momentum in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher yesterday after futures tested 2250 once again to close at 2238. The stochastics are near oversold but are seen converging on the upside, and the MACD diff is negative and converging, suggesting higher prices in the near term. To confirm the bullish indicators and rejection of prices below 2211, futures need to take out resistance at 10 DMA at 2258 and then target a 50% fib level at 2301. On the downside, futures need to close below 2200 and then target the recent lows of 2187 in order to confirm the outlook of lower prices. 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 strengthen in the near term.