NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday after finding support at 18.20 once again, causing the market to close at 18.37. The stochastics are falling, with %K/%D diverging on the downside, and the MACD diff is negative and diverging, suggesting more downside impetus. To confirm the double bottom formation, futures need to close back above 18.57 and then target 10 DMA at 18.98. On the downside, a break below 38.2% fib level at 18.11 could set the scene for 18.00. The narrow candle body with a longer lower wick points to prices being tested and rejected, which could be indicative of a trend reversal. The indicators, however, highlight further downside momentum, and futures need to break below 18.11 to confirm this.
Ldn 2nd Month Sugar Futures
Ldn sugar edged higher yesterday as intraday trading caused futures to test support at 484.50 once again; the market closed higher at 487.90. Stochastics are falling, and %K/%D is seen diverging on the downside. The MACD diff is negative and diverging, highlighting further downside momentum. To maintain another bullish candle, prices need to close above 490.30 and then target 10 DMA resistance at 498.89. On the downside, the rejection of prices above 490 could trigger losses back to the 481.50 before targeting 480. Buying pressure remains weak, and the indicators are pointing to further downside momentum. Additionally, an inside bullish candle could point to a continued bearish trend in the near term.
NY 2nd Month Coffee Futures
NY coffee strengthened yesterday, as intraday buying pressure triggered a close above near term support of 40 DMA at 228.20. The stochastics are falling, yet converging, with %K/%D is converging on the upside in the oversold. The MACD diff is negative and diverging. A narrow bullish candle body with longer wicks suggests marginal appetite below 40 DMA at 226.54; this could set the scene for lower prices to break below the support at 220. On the upside, a breach of resistance at 229.65 would strengthen the bullish momentum. This could also trigger gains towards the 10 DMA at 235.21. Indicators point to higher prices, and a break of the near term resistance could strengthen the momentum on the upside.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw prices close at 2317. The RSI is rising, and %K and %D are crossing over each other every day, but the trend seems to be converging on the downside. The MACD diff is positive and converging marginally, suggesting some appetite for lower prices, but futures need to break below the psychological levels to trigger the momentum. Prices need to take out the 10 DMA at 2303. A break below this level towards 2279 would confirm the strong bearish momentum. Conversely, an appetite for prices above 2327 could trigger a test of resistance of 2330. A gravestone doji candle shows rejection of higher prices and could point to an end of moderate bullish sentiment we have seen in the last couple of weeks. We anticipate prices on the back foot in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures opened above the previous day’s close; however, prices struggled above 10 DMA and closed at 2487. The stochastics are falling, with %K/%D seen diverging on the downside out of the overbought. The MACD is positive and converging, suggesting waning buying pressure. The rejection of higher prices may prompt a break back towards support at 2436, a subsequent breach of this level could trigger losses towards 2400. On the upside, a break of 10 DMA resistance at 2501 may prompt futures to test 40 DMA at 2508. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. Longer upper and lower wicks point to an appetite out of the current trading range; however, the future needs to break above 10 DMA support to confirm the outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened during the day yesterday after struggling to break above resistance of 50 DMA. The market closed at 1715. The stochastics continue to soften after %K broke below %D, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through support at 1700. A break below this level would bring into play the 50% fib level at 1691, which could set the scene for support at 1650 in the longer term. On the upside, futures need to break back above 50 DMA at 1719 in order to confirm upside momentum. Appetite for prices above this level could trigger gains towards the level at 1750. Longer lower wick, where most of the trading took place in the upper ranges, points to appetite on the upside, however, prices struggled above resistance at 50 DMA; the futures need to take out this level to confirm the sentiment for higher prices.