NY 2nd Month Sugar Futures
NY sugar futures gained ground yesterday as protracted buying pressure prompted a test of the 10 DMA level to close on the front foot at 17.72. The stochastics are falling yet converging near the oversold, and the %K seen edging up, highlighting waning selling pressures. The MACD diff is negative and converging. To confirm another bullish candle, futures need to close above 10 DMA at 17.81 and then target 17.87. On the downside, a complete break below 40 DMA at 17.44 could set the scene for lower prices towards the support of 17.00. However, the market struggled below the 40 DMA level in recent sessions, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen 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 100 DMA at 451.01. The RSI is rising, while %K/%D has converged on the upside. The MACD diff is negative and converging, confirming rising buying pressures. On the downside, a break below the key support level of 440 could trigger losses back towards 435, a break below 431 would confirm the outlook of lower prices in the longer term. On the upside, a close above the 40 DMA at 456.19 could trigger gains through 10 DMA at 459.42 towards 470. Long candle body points to more certainty in the bullish momentum, and a close above 40 DMA would confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
NY coffee futures edged higher yesterday as intraday trading saw prices close at 157.05. The stochastics are rising, with the %K/%D diverging upwards, and the MACD diff is negative and about to converge on the upside. A break of the 40 DMA at 156.13 could trigger losses through 155, with the secondary level at 10 DMA at 153.12. On the upside, a break above trend resistance at 157.84 could set the scene for bullish momentum towards 160. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above trend resistance, we could see more downside movement in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday, causing the market to close at 1756. The stochastics are rising, with %K/%D diverging in the overbought, but the MACD diff lacks conviction, suggesting market indecisiveness. To confirm the outlook of higher prices, futures need to close back above 1768; the level prices struggled to break above since late May 2018 and then target 1800. On the downside, a break below 1755 could set the scene for 10 DMA at 1720 and then 1700. 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.
NY 2nd Month Cocoa Futures
NY cocoa futures softened yesterday after finding support above 2355. The market closed at 2369. The stochastics are rising yet converging, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 2355. A break below this level would bring into play the 10 DMA at 2351, which could set the scene for support at 2317. On the upside, futures need to gain back above 2400 and then 40 DMA at 2406 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 2434; this could strengthen the trend in the long run on the upside. The indicators suggest further selling pressures in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures sold off yesterday after investors rejected prices above 2250, prompting a close below 10 DMA at 2239, at 2217. The stochastics are rising, with RSIs in neutral territory; the %K/%D is diverging on the upside and edging close to the overbought territory, suggesting a short-term positive trend. The MACD diff is positive and diverging, indicating improving sentiment on the upside. To confirm the bearish candle, prices need to break below the support level at 38.2% fib level at 2211 before the 2200 level. Secondary support stands at trend support at 2196, a break below would confirm the three black crows formation. On the upside, to regain upside conviction, futures need to close back above 40 DMA at 2271 and then 2300 in the near term. Near term momentum is on the downside, the close below a shorter-term DMA confirms this trend.