NY 2nd Month Sugar Futures
NY sugar futures gained ground yesterday as buying pressure triggered a close on the front foot at 17.71. The stochastics are rising with the %K/%D diverging towards the overbought area, as the MACD diff is about to converge on the upside – a clear buy signal. This suggests we could see higher prices in the near term towards above the trend resistance of 17.87 to target 18.00. A test of 18.23 resistance level would confirm a double top candle formation. On the downside, the candle found support at 17.50, and if the prices break through this level, we could see prices retreat back through the 10 DMA at 17.23 before 17.00. The three white soldier formation is a bullish signal, but futures need to take out the trend resistance at 17.87 in order to confirm the outlook on the upside.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged higher relative to Friday’s candle; however, weakness prevailed during the day, and the futures closed lower at 466.20. The stochastics are rising out of the oversold, 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 460, futures need to take out resistance at 470 and then target 478.80. On the downside, futures need to close below 460 and then target 10 DMA at 456.40 in order to confirm the outlook of lower prices towards 452.80. Long upper wick points to an appetite for higher prices; however, weakness prevailed during the day. Futures need to take out current resistance to confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
Prices weakened yesterday as selling pressure triggered a close below the previous day’s closing price at 163.05. The MACD diff is positive and diverging, and the stochastics are converging. The RSI is overbought, confirming the change in trend in the near term. The market has been well bid, and in order to confirm the recent trend and ascending triangle, prices need to break 164.30 and then 170. Conversely, to confirm the previous shooting star candles and rejection of resistance at 168.65, the market needs to break below 160 before targeting 159.30. This would bring into play the trend support and 10 DMA at 155.65.
Ldn 2nd Month Coffee Futures
London coffee futures edged higher yesterday as moderate buying pressure saw prices close at 1615, the 2018 highs. The stochastics remain elevated in the overbought but are seen converging on the downside, with the %K soon to leave the overbought territory, however, the MACD diff is positive and diverging. A break of 1557 could trigger losses through 10 DMA at 1525, with the secondary level at 1500. On the upside, a break above last sessions’ highs at 1642 could set the scene for bullish momentum. The market, however, is showing signs of indecisiveness, outlined by long upper and lower wicks, and we could see more downside movement in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures gained ground yesterday as intraday trading triggered a close on the front foot at 2467. The stochastics are falling as the MACD diff remains negative, signalling a continued muted outlook. This suggests we could see prices remain within the current range in the near term, but in order to suggest a change of sentiment, the market needs to take out immediate resistance at 100 DMA at 2494, before 2500. On the downside, support around 40 DMA at 2455 is robust, and if this level does not hold firm, we could see prices retreat back through 2450 before 2434. Long upper wick points to the appetite for higher prices; however, narrow candle body lacks conviction to suggest an outlook out of the current range.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures gained ground yesterday after prices tested resistance at 100 DMA, this triggered a close at 2322. The stochastics are falling, and now in the oversold, and the MACD diff is negative but lacks conviction. A break below the current support of 50% fib level at 2301 could see futures test trend support at 2297 once again, setting the scene for lower prices at 2275. On the upside, in order to confirm higher prices, futures need to close above the current resistance and 100 and 10 DMAs at 2327. These levels have been robust, and we expected prices to remain capped on the upside.