NY 2nd Month Sugar Futures
NY sugar futures sold off yesterday after investors rejected prices above support at 19.00, prompting a close below at 18.28. The stochastics are falling, the %K is now in the oversold, highlighting a recent strong selling trend. The MACD diff is negative and diverging, indicating improving sentiment on the downside. To confirm another bearish candle and form the three black crows formation, prices need to break below the trend support level at 18.29 before the 38.2% fib level at 18.13. Conversely, to regain upside conviction, futures need to close back above 18.57 and then 19.00 in the near term. Near term momentum is on the downside, and a close below the trend support would confirm this trend.
Ldn 2nd Month Sugar Futures
Lnd sugar futures buckled yesterday as protracted selling pressure triggered a close on the back foot at 484.50. The stochastics are falling, and %K is now in the oversold territory, the RSI is also falling. The MACD diff is negative and diverging, confirming growing selling pressure; this could set the scene for lower prices below 480. A break below this level would confirm the outlook of lower prices down to 471.80 and then 470. On the upside, a break above 100 DMA resistance level at 497.45 and appetite above 40 and 10 DMAs at 506.22 and 507.54, respectively, could strengthen the trend on the upside in the long run. Futures need to take out the 480 in order to confirm the outlook of lower prices.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday as protracted selling pressure triggered a close at232.20. The stochastics are falling, with the %D soon to leave the overbought territory, and the MACD diff is positive and converging. A break of 226.55 could trigger losses through 220, with the tertiary level at 215. On the upside, a break back above 10 DMA at 234.88 could set the scene for bullish momentum. After the last session’s market indecisiveness – the spinning top formation – the narrow candle body points to more a lack of appetite for prices below the near term support in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday after piercing the support level of 40 DMA. The market closed lower at 2200. The stochastics are falling, with %K/%D just diverging on the upside, and the MACD diff is negative and diverging. The reaffirmation of support at 2200 could set the scene for higher prices back to test the 10 DMA level at 2240, confirming an inverse hammer formation. On the downside, futures need to break below the support of 2173 in order to confirm the bearish trend. Indeed, the 40 DMA support level has been robust in the last couple of months, a break below this level would suggest strong conviction on the downside. The longer upper wick with a narrow body confirms the support is still intact.
NY 2nd Month Cocoa Futures
NY cocoa futures continued to fall yesterday, as protracted selling pressure prompted a break of support of 2360. The market closed at 2340. The stochastics are falling, about to enter the oversold territory, and the MACD diff is negative and diverging on the downside, suggesting bearish momentum in the near term. A complete break below 2360 could trigger losses through 2317 and 2300. On the upside, a breach back above the resistance at 2400 would bring into play the recent firm resistance of 2436. The indicators point to lower prices in the near term, but the bearish candles have been getting shorted, pointing to a diminishing appetite for lower prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened yesterday after closing below 1650 at 1636. The stochastics are falling towards the oversold territory, and the MACD diff is negative and diverging, suggesting we could see lower prices in the near term through the support of 23.6% fib level at 1628. A break below this level would bring into play 1600. On the upside, futures need to gain back above 1650 in order to confirm upside momentum. Appetite above this level could trigger gains towards the 50% fib level at 1691; this could strengthen the trend in the long run on the upside. The longer upper wick points to an increasing appetite on the upside, but we expect to see the price edge lower in the near term.