NY 2nd Month Sugar Futures
NY sugar futures surged higher yesterday as protracted buying pressure cause prices to break resistance at 18.00 and then closed at 18.09, the level last seen in March 2017. The stochastics are rising and have edged up further into the overbought area, and the MACD diff is positive and is diverging, outlining the improved outlook on the upside. Long candle body yesterday suggests a strong appetite for higher prices above the immediate resistance at 18.20 before targeting 18.53 in the medium term. On the downside, a break below the 17.52 level could trigger losses towards the support level at 10 DMA at 17.31. In order to confirm the outlook for a continued bullish trend, prices need to close above 17.66. Momentum favours the upside, and we expect this to remain the case in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 480 at 480.50. The RSI is rising, while %K/%D is diverging on the upside, edging towards the overbought. The MACD diff is positive and diverging, confirming rising buying pressures. On the downside, a break below the key support level of 10 DMA at 463.64 could trigger losses back towards 460, a break below the 40 DMA at 445 would confirm the outlook of lower prices in the longer term. On the upside, a breach of 500 could trigger gains through 513 towards 520. Long candle body points to more certainty in the bullish momentum, and a break through 500 would confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
NY coffee futures gained ground yesterday, as intraday trading prompted a test of 151. The market closed at 150.10. The stochastics are falling, and the MACD diff is positive and converging on the downside, suggesting bearish momentum in the near term. The prices have been supported above the 10 DMA at 146.61. The fall below this level could trigger losses through 145 and 140. On the upside, a breach back above the trend resistance at 153.80 would bring into play the recent firm resistance of 155.40, confirming an inverse hammer formation. The indicators point to lower prices in the near term, but we need to see a break of 10 DMA to confirm the trend.
Ldn 2nd Month Coffee Futures
Ldn coffee prices gained ground yesterday appetite for prices below the previous day open prices triggered a close at 1532. The stochastics are overbought, with the %K/%D stochastic converging on the downside, suggesting we could see prices deteriorate in the near term. The MACD diff is positive and starting to converge. The RSI is fluctuating near the overbought, and yesterday’s candle suggests we could see prices challenge 1550 in the near term. In the medium term, futures need to hold above that level and then break the double top at 1557. On the downside, rejection of prices around 1537 ay trigger losses back to 10 DMA at 1498. Despite a positive candle yesterday, buying pressure is weak, outlined by close near the lows, and we expect the prices to soften in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures softened yesterday after finding support above 40 DMA. The market closed at 2466. The stochastics are rising, but are converging, and the MACD diff is positive and diverging. The indicators paint a mixed picture, however, if the moderate selling pressure persists, we could see lower prices in the near term through the support of 40 DMA at 2446. A break below this level would bring into play the 2434 level, which could set the scene for 38.2% fib level support at 2414. On the upside, futures need to gain back above 2528– the previous day’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 2550; this could strengthen the trend in the long run on the upside. The long lower wick points to an increased appetite on the downside, and we could see price edge lower in the near term, given that futures break below the 40 DMA support.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged lower yesterday as intraday trading saw futures test close at 2340. The stochastics are rising towards the overbought territory but seen converging, as the MACD diff is positive and diverging on the upside. This outlines the improving strength of buying pressure in recent sessions. However, Tuesday’s activity suggests uncertainty in the market. In order to regain upside momentum, futures need to close back above 2355 and then 2373. The key level on the upside is 2400. Conversely, rejection of prices at 2350 could trigger losses back towards 100 DMA at 2310. The 100 DMA just crossed below the 40 DMA level, and this points to potentially lower prices in the near term, while simultaneously providing support on the downside.
