NY 2nd Month Sugar Futures
NY sugar held the nerve yesterday as intraday trading caused futures to close at 19.39. RSI is rising marginally, and %K/%D is seen converging on the upside, confirming the change of trend in the near term. The MACD diff, however, is negative and diverging. To maintain positive momentum, prices need to close above 19.44 and then target 10 DMA at 19.80. On the downside, the rejection of prices above 19.44 could trigger losses back to 19.10 before targeting trend support at 19.00. Buying pressure remains weak, and the indicators paint a mixed picture for futures prices. The doji candle confirms market uncertainty. The break of resistance above near term resistance and a full bullish candle could confirm the outlook for higher prices in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 507.40. The RSI is rising, while %K/%D diverging on the downside. Likewise, the MACD diff is negative and diverging, confirming growing selling pressures. On the upside, appetite above the 10 DMA level at 501.87 could trigger gains through 517.60 towards 520. On the downside, a break below the 40 DMA at the 473 level could trigger losses back towards 500. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer upper wick signals appetite for higher prices, but futures struggled above 10 DMA to close higher.
NY 2nd Month Coffee Futures
NY coffee futures sold off yesterday as lack of appetite for higher prices helped to close on the back foot at 194.85. Stochastics have converged in the overbought territory, suggesting further selling momentum in the near term. MACD diff is positive and converging, supporting the outlook for deteriorating prices. The sell-off yesterday near the lows suggest further selling pressure below the current support level at 23.6% fib level at 191.22, and the indicators support lower prices. A complete break below the 10 DMA at 197.41 could set the scene for a test of support at 40 DMA at 190.27. On the upside, support around this level would help reaffirm the bullish trend in the near term towards 206.35, but futures struggled above that level. We expect prices to weakened further today.
Ldn 2nd Month Coffee Futures
Prices weakened yesterday as moderate selling pressure triggered a close above the 2100 support level; the market closed at 2109. The stochastics are falling; with the %K/%D diverging on the downside and the MACD is negative and diverging, confirming the outlook for lower prices. The bearish short-bodied candles point to market uncertainty below the current support level, and in order to confirm the negative momentum, prices need to break below it towards 2066 and 2034. Conversely, support at 2000 could hold and set the scene for a test of 2173. We expect prices to weaken today but struggle below the current support level once again.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday, causing the market to close at 2792. The stochastics are rising, with %K in the overbought, and the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close back above 2800 and then target 2821. The 10 DMA is closing in and supporting prices on the downside. However, a break below 2768 could set the scene for 2726 and then 2700. The narrow candle body with a long lower wick points to market uncertainty about the outlook for higher prices, and we could see futures change momentum in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened yesterday after finding resistance at 1888. The market closed at 1876. The stochastics are gaining ground towards the overbought territory, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through near term resistance. A break below 1866 would bring into play the 1850 level, which could set the scene for 100% fib level at 1810. On the upside, futures need to gain back above 1888– the previous day’s high - in order to confirm upside momentum. The appetite above that level could trigger gains towards the level at 1900; this could strengthen the trend in the long run on the upside. The hanging man formation, where there was some sell-off during the day, points to an end of the uptrend, however, short candle body point to market uncertainty about the change of trend.