NY 2nd Month Sugar Futures
NY sugar held the nerve yesterday as intraday trading caused futures to close at 18.55. RSI is rising marginally, but %K/%D is diverging on the downside, confirming the recent strong selling pressure. Likewise, the MACD is converging on the downside, confirming growing downside momentum. To maintain positive momentum, prices need to close above 10 DMA at 18.56 and then target 19.00. On the downside, the rejection of prices above 10 DMA could trigger losses back to the 18.00, the longer-term support level. Buying pressure has been weak, and the indicators point to a slowdown of that momentum. The narrow candle body and long wicks confirm market uncertainty. The break of resistance at 10 DMA could confirm the outlook for higher prices in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged higher yesterday as intraday trading saw prices close at 466.70. 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 460 could trigger losses through 40 DMA at 458.06, with the secondary level at 100 DMA at 453.16. On the upside, a break above 470 could set the scene for bullish momentum to test 478.80. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 10 DMA, we could see prices capped in the meantime.
NY 2nd Month Coffee Futures
NY coffee futures gained ground yesterday as buying pressure prompted a test of 180. The market closed at 177.85. The stochastics are decreasing, and the MACD diff just converged on the downside, suggesting bearish momentum in the near term. The prices have been supported above 174.50 in the last couple of sessions. The fall below this level could trigger losses through 170 and 38.2% fib level at 168.03. On the upside, a breach back above 180 would bring into play the recent resistance of 23.6% fib level at 185, confirming an inverse hammer formation. Futures need to take out the resistance at 10 DMA at 192.15 in order to confirm the trend. We expect futures to edge higher today.
Ldn 2nd Month Coffee Futures
Ldn coffee futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 1787. The RSI is rising, while %K/%D diverging towards the oversold. Likewise, the MACD diff is negative and diverging, confirming growing selling pressures. On the upside, finding support above 1800 could trigger gains through a 23.6% fib level at 1815 towards 10 DMA at 1866. On the downside, a break below the 40 DMA at the 1724 level could trigger losses back towards 1700. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer upper wick signals that the buying pressure is growing, and the bullish outlook is on the horizon.
NY 2nd Month Cocoa Futures
NY cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 200 DMA at 2465. The RSI is rising, while %K/%D has converged on the upside in the overbought. The MACD diff is positive and diverging, confirming rising buying pressures. On the downside, a break below the key support level of 10 DMA at 2418 could trigger losses back towards 2400, a break below the 40 DMA at 2385 would confirm the outlook of lower prices in the longer term. On the upside, a close above trend resistance could trigger gains through 2500 towards 2523. Long candle body points to more certainty in the bullish momentum, and a close above 100 DMA confirmed the outlook for higher prices.
Ldn 2nd Month Cocoa Futures
Lnd cocoa futures surged higher yesterday as intraday trading cause prices to test resistance at 2361 and then closed at 2360. The stochastics are rising and are in the oversold area, but the MACD diff is positive and converging, outlining the softening bullish outlook. The RSI is rising, and we expect futures to edge higher in the near term towards the resistance of 2388, the robust level on the upside. On the downside, if futures fail into 10 DMA at 2327, then we could see futures break back below 2300 before the long term support of 100 DMA at 2295. We expect futures to firm in the near term; however, the prices need to breach the near term resistance level before confirming the bullish outlook.
