NY 2nd Month Sugar Futures
NY sugar futures gained ground yesterday as buying pressure triggered a close on the front foot at 20.62. The stochastics are rising with the %K/%D about to converge on the upside, sending a buy signal, as the MACD diff is negative and diverging. The indicators paint a mixed picture, and to confirm the outlook on the upside, futures need to break out of 20.64 level towards 20.90. On the downside, the candle found support at 10 DMA at 20.48 - if the prices break through this level, we could see prices retreat back through the 20.14 before 20.00. the futures struggle to break below the trend support, and a break of this level would confirm the outlook on the downside.
Ldn 2nd Month Sugar Futures
Ldn sugar strengthened yesterday, as protracted buying pressure triggered a close on the front foot at 510.70. The stochastics are rising, with %K/%D diverging on the upside towards the overbought. The MACD diff is negative and converging. A narrow bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 512.90. This would confirm the trend for rising prices, up to the 519.90, the August highs. On the downside, a breach of support at 10 DMA at 503.05 would strengthen the bearish momentum. This could also trigger losses towards 500. Indicators point to higher prices, but with prices struggling in the past above 513, futures are capped on the upside.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday, causing the market to close at 194.35. The stochastics are converging, with %K falling in the overbought, and the MACD diff is positive and converging, suggesting lower prices in the near term. To confirm the outlook of higher prices, futures need to close back above 200, the level prices struggled to break above, and then target 206.35. The 10 DMA at 190.15 is closing in and supporting prices from the downside. However, a break below that level could set the scene for 40 DMA at 181.97 and then 180. The narrow candle body with a long upper wick points to a heightened appetite for lower prices, and futures need to break below the current support level of 191.22 to confirm the near-term outlook.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened marginally yesterday as intraday trading saw futures test appetite at 2034. This level held firm, and closed at 2056. The stochastics are tailing off, with %K/%D converging on the downside in the overbought. Likewise, the MACD diff is converging on the downside, signalling growing selling pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 2070, which could set the scene for futures to take out 2100. On the downside, the market needs to take out support at 2027 and then support at 2000. The 10 DMA at 1976 level continues to support the futures on the downside, however, seen flattening, and with a longer upper wick on Thursday, we could see the bears’ strength grow in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 10 DMA at 2611. 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 2550 could trigger losses back towards a 50% fib level of 2534, break below 2500 would confirm the outlook of lower prices in the longer term. On the upside, a close above 2626 could trigger gains through 2650 towards 2675. Long candle body points to more certainty in the bullish momentum, and a close above 10 DMA would confirm the outlook for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures consolidated yesterday after prices found support above 10 DMA, prompting a close at 2485. The stochastics are rising into the overbought territory; the MACD diff is negative and converging. The reaffirmation of support at 2491 could trigger gains towards 2500 before targeting 2507. On the downside, a break below 2400 could see prices test the 40 DMA at the 2367 level. We expect prices to remain within the recent range today and test appetite around 2500.
