NY 2nd Month Sugar Futures
NY sugar futures sold off yesterday as lack of appetite for higher prices helped to break the 17.50 support, the market closed at 17.48. Stochastics are converging on the downside, suggesting further selling momentum in the near term. MACD diff is negative and is about to converge on the upside, supporting the outlook for strengthening prices. The last two days formed a bearish engulfing pattern, a sign of an impending market downturn. The sell-off yesterday suggesting further selling pressure below the current support level, and the above-mentioned indicators support lower prices. A break below the 10 DMA at 17.26 could set the scene for a test of support at 17.00. The 40 DMA is at 16.85, and we expect robust support at this level. On the upside, trend resistance around 17.92 and then at 18.00 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
Ldn sugar futures softened yesterday after finding support above 460. The market closed at 462.20. The stochastics are rising and converging, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 10 DMA at 457.87. A break below this level would bring into play the 40 DMA level at 455.03, which could set the scene for support at 452.80. On the upside, futures need to gain back above 470 – the previous day’s high - in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 478.80; 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 the price edge lower in the near term.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as protracted selling pressure triggered a close at 159.65. The stochastics are falling, with the %K/%D in the overbought territory, and the MACD diff is positive and converging. A break of 159.30 could trigger losses through 100 DMA at 157.36, with the secondary level at 155.40. On the upside, a break above last sessions’ highs at 168.65 could set the scene for bullish momentum. The long candle body and indicators point to more downside movement in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday as moderate selling pressure triggered a close at 1616. The stochastics are rising, yet converging, with the %K in the overbought territory; however, the MACD diff is positive and converging. A break of 1600 could trigger losses through 1557, with the secondary level at 10 DMA at 1548.50. On the upside, a break above previous sessions’ highs at 1642 could set the scene for a test of 1650, pointing to a change of trend for more bullish momentum. Yesterday’s bearish spinning top formation points to market indecisiveness about the outlook for higher prices, and we need the futures to break support at 1600 to confirm the outlook.
NY 2nd Month Cocoa Futures
NY cocoa weakened yesterday, as protracted selling pressure triggered a close on the back foot at 2455. The stochastics are falling, edging close to oversold, and the RSI has also edged lower. The MACD diff is negative, however, lacks the conviction to suggest an outlook. Bigger bodied bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 2450 support level. This would confirm the trend for falling prices, down to 2434. On the upside, resistance at 200 DMA at 2494 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards 2500. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened marginally yesterday as selling pressure saw futures broke trend support at 2300. This level held firm, and the future closed at 2293. The stochastics are falling, with %K/%D in the oversold. Likewise, the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for higher prices, futures need to break back above the resistance at 2300, which could set the scene for futures to take out the 10 DMA at 2315. On the downside, the market needs to take out support at 2273 and then support at 2250. We expect to see further softening in the near term,