NY 2nd Month Sugar Futures
NY sugar futures strengthened yesterday as protracted buying pressure pierced resistance at 19.76 level to close at 19.87. The stochastics have converged on the upside and are now in the overbought territory, highlighting growing buying pressures. The MACD diff is positive and diverging. To confirm another bullish candle, futures need to close above 20 and then target the 20.38. On the downside, the break below 10 and 40 DMAs at 19.49 and 19.26, respectively, could set the scene for lower prices towards the support of 19.00. However, the market struggled below that level in recent weeks, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term, however, the futures need to break above 20 to confirm that.
Ldn 2nd Month Sugar Futures
Ldn sugar futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 516. The RSI is rising, while %K/%D are diverging on the upside into the overbought. The MACD diff is positive and diverging, outlining recent market strength. On the downside, a break back below the support level of 40 and 10 DMAs at 506.33 and 504.94, respectively, could trigger losses back towards 500, break below which would confirm the outlook of lower prices in the longer term. On the upside, a break above 517.60, a level futures struggled above, could trigger gains through resistance towards 525. We could see prices trend even higher today, but resistance at 517.60 needs to be broken for this to be the case.
NY 2nd Month Coffee Futures
NY coffee strengthened yesterday, as protracted buying pressure triggered a close on the front foot at 213.30. The stochastics are rising, with %K/%D seen converging on the upside towards the overbought. The MACD diff is negative and converging. A long bullish candle body with a longer upper wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 215. This would confirm the trend for rising prices, up to the 217.85 and 220, the July highs. On the downside, a breach of support at 10 DMA at 209.01 would strengthen the bearish momentum. This could also trigger losses towards 205. Indicators point to higher prices, but with prices struggling in the past above 215, futures are capped on the upside.
Ldn 2nd Month Coffee Futures
Ldn coffee futures consolidated yesterday, breaking above resistance at 2279 and closing at 2292, a series high. The stochastics are edging towards the overbought territory, and the MACD diff is negative and about to converge on the upside, suggesting the futures still have more room to go. On the upside, futures need to break completely above 2279 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 2300; this could strengthen the trend in the long run on the upside. A break back below the current support of 10 DMA at 2223 would bring into play 2173, which could set the scene for support at 40 DMA at 2163. We see prices edge higher in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures gained ground yesterday as buying pressure triggered a close on the front foot above 10 DMA at 2537. The stochastics are rising, with the %K/%D exiting the oversold area, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards the resistance of 2550, but the market needs to take out immediate resistance of 50% fib level at 2540. On the downside, the candle closed above 10 DMA at 2509, and if this level does not hold, we could see prices test 2473 before 2450. Longer lower wick points to appetite for higher prices, but futures need to take out 2340 completely in order to confirm the outlook on the upside.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve yesterday, causing the market to close at 1719. The stochastics are rising, with %K/%D diverging on the downside out of oversold, and the MACD diff is negative and about to converge, a strong buy signal. To confirm the outlook of higher prices, futures need to close above 61.8% fib level at 1719 and then target 100 DMA at 1739. However, a break below 200 DMA at 1704 could set the scene for 1700 and 1662. narrow candle body with longer lower wicks points to more appetite on the upside, but the futures need to break out of current resistance to confirm the near-term outlook.