NY 2nd Month Sugar Futures
NY sugar futures softened marginally yesterday as intraday trading saw futures test appetite at 19.42. This level held firm, and the future closed at 19.29. The stochastics are rising, with %K/%D diverging on the upside. Likewise, the MACD diff is positive and diverging, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 19.42, which could set the scene for futures to take out the 100 DMA at 19.53. On the downside, the market needs to take out support at 50 DMA at 19.26 and then support at 19.00. The 50 and 100 DMA levels capped the futures on both upside and downside, and they need to break out of these levels to confirm the outlook.
Ldn 2nd Month Sugar Futures
Lnd sugar futures failed above the previous day’s highs yesterday as intraday trading caused them to close at 507.50. The stochastics are rising, with %K/%D edging towards the overbought, but %K is seen tailing off; the MACD diff is positive and diverging. The rejection of prices at 510 once again has formed a candle with a short body but a longer lower wick, confirming a lack of appetite for higher prices. If prices were to break back above these levels, this could trigger a test of 520 and then 525. To confirm another bearish candle, futures need to take out 50 DMA at 504.59 and then support at 500. A break below this level would confirm the outlook for lower prices.
NY 2nd Month Coffee Futures
NY coffee futures weakened yesterday as futures failed into the resistance at 245 and closed at 240.20. The stochastics are diverging on the downside. The MACD diff just converged on the downside, a strong sell signal. A break below support at 240 would confirm another bearish candle. This may pave the way for lower prices to 229.25, with the tertiary level at 220. Conversely, the reaffirmation of support above 240 would suggest higher prices and a close above 252, setting the scene for higher prices towards 260, but prices struggled to break above the near term resistance in the last couple of sessions. Yesterday’s candle wicks being shorter suggests a growing appetite for lower prices and could trigger a break of support today. The indicators are pointing to a decline in prices in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened marginally yesterday as moderate selling pressures saw futures test appetite at 2325. This level held firm, and the future closed at 2306. The stochastics are seen converging on the downside, with %K seen edging downwards. Likewise, the MACD diff is positive and converging on the downside, signalling growing selling pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 2334, which could set the scene for futures to take out 2340. On the downside, the market needs to take out support at 2275 and then support at 50 DMA at 2209. The 50 DMA level continues to support the futures from 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
Prices weakened yesterday as moderate selling pressure triggered a close below the 61.8% fib support level at 2475; the market closed at 2451. The stochastics are rising, signalling a continuation in the bullish trend in the near term, but with %K seen converging, that could signal a change of momentum in the near term. The MACD lacks conviction, and the candle with a long lower wick supports appetite for lower prices, but bears lacked the strength to break below the near term support. Dips in the market have not been well bid in the last couple of sessions, so in order to confirm the change in trend, prices need to break below the current support of 2400 and then 2333. Conversely, a break above the 2475 resistance line could set the scene for a test of 200 DMA at 2508. We expect prices to remain supported above the 2400 support level in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged lower yesterday as moderate selling pressure caused futures to close at 1661. The stochastics are edging higher but converging on the downside, with %K seen tailing off, and the MACD diff is positive and converging, pointing to growing selling pressure. The rejection of prices above 1697 has formed a candle with long higher and lower wicks, suggesting uncertainty for either direction. If prices were to break below support at 76.4% fib level at 1652, this could trigger a test of 1630 and then at 1600. On the upside, futures need to take out 1697 and then robust resistance at 200 DMA at 1707. Indicators point to waning buying pressures in the near term, but the futures need to take out support to confirm that.