NY 2nd Month Sugar Futures
NY sugar futures consolidated yesterday after prices failed above 20.90, causing a close at 20.63. The stochastics are rising and the MACD diff is positive but has stopped diverging, the stochastics are converging in positive territory. The shooting star candle suggests that we could see a correction to the downside back to the upper trend channel, with support at 20 next inline. The 10 DMA closing in and this could provide support in the near term. Momentum is on the upside, and the reaffirmation of support at 20 may set the scene for another rally to 21.
Ldn 2nd Month Sugar Futures
Ldn sugar futures consolidated yesterday, prices closed near unchanged and formed a doji candle. The market closed at 514.20 and the MACD diff is positive and diverging. The stochastics are in overbought territory and are converging, the RSI is topping out but the ADX is also rising which outlines the recent trend. The rejection of prices at the upper trend channel could set the scene for lower prices through the 138.2% fib level before targeting 500 and the tertiary level at 484.90. On the upside, if support at the 506.74 holds firm but this could trigger a break of 524.40. We expect prices to soften in the near term.
NY 2nd Month Coffee Futures
NY coffee futures sold off yesterday as selling pressure prompted a close at 182. The stochastics are falling, the %K looks set to cross below the %D stochastic and both are oversold. The MACD diff is negative and is starting to diverge, yesterday's full candle could set the scene for lower prices through 181.43, towards 174.50. Prices still trade the recent range and are above the key support level. On the upside, futures need to break above 190 and then target 195 in order to confirm the prospect of higher prices to 200. Sentiment is marginally in favour of the downside and we expect futures to weaken in the near term.
Ldn 2nd Month Coffee Futures
Futures posted an inside day yesterday, and prices edged lower to close at 1845. The stochastics are rising but the MACD diff lacks conviction as does the RSI, this outlines the recent consolidation in the market. The mixed outlook from the indicators suggests a lack of conviction in the market. We could see prices edge lower towards 1800 in the near term but the 40 DMA is closing in and could provide support in the near term. If the market reaffirms support at this level, prices could push back toward 1900 in the medium term. On the downside, a break below the 40 DMA may set the scene for lower prices to 1700.
NY 2nd Month Cocoa Futures
Prices rallied yesterday as intraday trading saw prices supported below the 100% fib level and close on the front foot at 2648. The stochastics are rising, and the MACD diff is positive but is not diverging. The ADX is rising outlining the recent upward trend. Futures need to break above 2675 in order to confirm the double bottom at 2268 in July. The market has failed above 2700 and this could set the scene for a break back below 2600 in the medium term. Momentum remains on the upside and we expect this to remain the case in the near term.
Ldn 2nd Month Cocoa Futures
Futures were well supported below previous resistance at 2453.11, the market closed at 2470.85. The stochastics are rising and are in overbought territory and the MACD diff are converging. The rejection of prices at 2500 and increased selling pressure indicates that we could see futures break below support at 2453, towards 2400. If resistance at 2500 holds firm, the market would form a head and shoulders pattern, to confirm this pattern prices need to break support at 2300. On the upside, futures need to take out 2500 before targeting the YTD high at 2531. The trend continues to favour the upside but the indicators are topping out and price action is consolidating suggesting momentum is waning.