NY 2nd Month Sugar Futures
NY futures gained ground yesterday as moderate buying pressure closed above 10 DMA resistance level at 17.22. The stochastics are rising, and the %K/%D have converged on the upside near the oversold, suggesting a buy signal in the near term. The MACD diff is also seen converging on the upside, highlighting the upcoming bullish trend. To confirm the bullish candle, futures need to find support above the 10 DMA level and then target 17.50. On the downside, the break below 17.00 could set the scene for lower prices towards the support of 16.85. However, the market was well supported above that level in recent weeks, the bullish candle with a long body suggests a potential change in sentiment. Firm support at that level suggests a lack of appetite below, and we expect prices to firm in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures consolidated yesterday after prices found support above 452.80, prompting a close at 458.80. The stochastics are diverging out of the oversold territory; the MACD diff is negative and converging. The ADX and DMI are converging on the upside, confirming the outlook for higher prices. The reaffirmation of support at 10 DMA at 454 could trigger gains towards 460 before targeting 470. On the downside, a break below the 40 DMA at 450 could see prices test the 100 DMA at 445 level. We expect prices to remain within the recent range today and test appetite around 460 today.
NY 2nd Month Coffee Futures
NY coffee futures softened yesterday after finding support above the previous day’s closing price. The market closed at 157.30. The stochastics are edging towards the overbought territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through the resistance of 159.30. A break above this level would bring into play the 160 level, which could set the scene for 165. On the downside, futures need to fall back below the trend line of 155.40 in order to confirm downside momentum. The rejection of support here could trigger losses towards the 10 level at 151.99; this could strengthen the trend in the medium run on the downside. After reaching multi-year highs, futures are seen struggling above 159.30, and we could see the bullish trend end if prices continue the decline 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 1538. The stochastics are rising with the %K/%D edging towards the overbought area, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards 1557, but the market needs to take out immediate resistance of 1550, which would confirm the double top formation. On the downside, the candle found support at the 10 DMA level at 1495, and if the prices break through this level, we could see futures retreat back through 1479 before 1469. The three white soldier formation is a bullish signal, but futures need to take out 1550 in order to confirm the outlook on the upside.
NY 2nd Month Cocoa Futures
NY cocoa strengthened yesterday, as protracted buying pressure triggered a close on the front foot at 2468. The stochastics continue to fall, with %K/%D is seen converging near 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 2500. This would confirm the trend for rising prices, up to 2520. On the downside, a breach of support at 40 DMA at 2494 would strengthen the bearish momentum. This could also trigger losses towards 2434. Indicators point to higher prices, and with futures breaking above the 40 DMA resistance level, we expect to see prices edge higher today.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened yesterday as futures failed into the resistance at 100 DMA at 2325 and closed at 2312. The stochastics continue to decline and have entered the oversold. The MACD diff turned negative, a clear sell signal. A break below trend support would confirm a bearish engulfing candle pattern. This may pave the way for lower prices to 2270 with the tertiary level at 2250. Conversely, the reaffirmation of support above 100 DMA would suggest higher prices and a close above 2350, setting the scene for higher prices towards 10 DMA at 2348. Yesterday’s candle body being larger Wednesdays’ suggests a growing appetite for lower prices and could trigger a break of support today. The indicators are pointing to a further decline in prices in the near term.