NY 2nd Month Sugar Futures
NY sugar futures sold off yesterday as lack of appetite for higher prices helped to break the 10 DMA support, the market closed at 17.23. Stochastics continue to fall out of the overbought, suggesting further selling momentum in the near term. MACD diff is just converged on the downside, a strong sell signal, supporting the outlook for deteriorating prices. The open below the previous day’s lows also suggests further selling pressure below the current support level, and the above-mentioned indicators support lower prices. A break below the 17.00 could set the scene for a test of support at 16.85. The secondary support is at 16.46. On the upside, support around 10 DMA at 17.44 would help reaffirm the bullish trend in the near term. We believe that the market lacks conviction, and prices should continue to fall.
Ldn 2nd Month Sugar Futures
Prices weakened yesterday as protracted selling pressure triggered a close below the 10 DMA support level; the market closed at 456.40. The stochastics are falling; the %K/%D have converged on the downside, signalling a potential change in trend. The MACD is positive and about to converge. Dips in the market have been well bid in the last couple of sessions, but in order to confirm the ascending triangle, trend prices need to break above the current resistance at 470 and then 478.80. Conversely, a break below the 452.80 support line could set the scene for a test of 449.60. We expect prices to soften today and remain on the back foot.
NY 2nd Month Coffee Futures
NY coffee futures edged higher yesterday as intraday trading saw prices close at 146.60. The stochastics are falling, with the %K/%D leaving the overbought territory, and the MACD diff is positive and about to converge on the downside. A break of the 23.6% fib level at 141.06 could trigger losses through 145, with the secondary level at 142.45. On the upside, a break above last sessions’ highs at 150 could set the scene for bullish momentum. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 146.95, we could see more downside movement in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened yesterday after finding support above 1479. The market closed at 1495. The stochastics are falling out of the overbought territory, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 1479. A break below this level would bring into play the 23.6% fib level at 1451, which could set the scene for trend support at 1450. On the upside, futures need to gain back above 1534 – the previous day’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 1550; 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.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower yesterday, causing the market to close at 2502. The stochastics are rising, with %K about to enter the overbought, 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 2523, the level prices struggled to break above since late March and then target 1550. The 200 DMA is closing in and supporting prices on the downside. However, a break below that level could set the scene for 40 DMA at 2445 and then 10 DMA at 2491. The narrow candle body with long upper and lower wicks points to market uncertainty about the direction of the move, and the futures need to break out of current resistance/support to confirm the near-term outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday as intraday trading saw futures test appetite at 2425. This level held firm, and the future closed at 2394. The stochastics are rising, with %K/%D trading in the overbought, and the MACD diff is positive and diverging, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 2409, which could set the scene for futures to take out the resistance at 2450. On the downside, the market needs to take out the support of 2373 and then support at 2355. The candle found support above 2390, and a long upper wick signals appetite for higher prices. 100 and 10 DMAs just crossed above the 40 DMA, confirming the market uncertainty. If the futures break below the current resistance, we could see prices edge higher.