NY 2nd Month Sugar Futures
NY sugar softened yesterday, as moderate selling pressure triggered a test of 10 DMA and closed on the above at 18.41. The stochastics have given a sell signal, highlighting the recent selling pressure. The MACD diff is positive and converging, suggesting increasing downside pressures; this could set the scene for lower prices towards the 18.17 support level if 10 DMA at 18.32 is breached. A break below this would confirm the trend for falling prices, down to 18.00. On the upside, resistance at 18.57 has capped futures in the last couple of days, and appetite above that level would strengthen the bullish momentum. This could also trigger gains towards the trend resistance at 18.70. Fuller candles along with longer lower wick point to an increased appetite on the downside, however, the futures need to break completely below 10 DMA to confirm the outlook.
Ldn 2nd Month Sugar Futures
Ldn sugar futures softened yesterday after testing support of 10 DMA once again. The market closed at 496.50. The stochastics have converged on the downside with the %K/%D falling out of the overbought territory, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term through the support of 40 DMA at 494.07. A break below this level would bring into play the support at 490, which could set the scene for 481.50 in the longer term. On the upside, futures need to gain a footing back above 100 DMA at 501.74 in order to confirm upside momentum. Appetite for prices at this level could trigger gains towards the trend resistance at 507.35; this could strengthen the trend in the longer run on the upside. While there is some downside pressures, prices need to break below the current support level to confirm the outlook.
NY 2nd Month Coffee Futures
NY coffee edged higher yesterday as intraday trading caused futures to close at 238.15. RSI is rising marginally, and %K/%D is falling, but %K is seen tailing off, suggesting the change of trend on the upside in the near term. The MACD diff is positive and about to break below into the negative territory. To confirm another positive candle, prices need to close above 10 DMA at 239.14 and then target 244.75. On the downside, the rejection of prices above 10 DMA could trigger losses through the 40 DMA 235.20 level before targeting 229.65. Buying pressure remains weak, and indicators point to a change to bearish momentum. The smaller candle body confirms market uncertainty for higher prices. The break of support at 40 DMA could confirm the outlook for lower prices in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 2203. The RSI is rising, while %K/%D converged on the upside and now diverging out of the oversold. Likewise, the MACD diff is negative and converging. On the upside, finding appetite above 2279 could trigger gains through 40 DMA at 2285 towards 2300 in the longer term. On the downside, a break below the 2200 level could trigger losses back towards 2173. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer upper wick signals that the buying pressure is growing, and the bullish outlook is on the horizon.
NY 2nd Month Cocoa Futures
NY cocoa weakened yesterday, as intraday selling pressure triggered a close on the back foot at 2554. The stochastics are falling, signalling a continuation of the current trend. The MACD diff crossed on the downside, a strong sell signal. On the downside, futures need to break below the 40 and 100 DMA support levels of 2528 and 2517, respectively. This would confirm the trend for falling prices, down to 2500. On the upside, if support at the 50% fib level holds, we could see a test of resistance at 2567. Appetite above that level would improve upside momentum. This could also trigger gains towards 2600. The bullish harami cross pattern could suggest the end of the downtrend, and if support at 40 and 100 moving averages is confirmed, we could trend change in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures weakened yesterday as it closed below the support at 1727. The stochastics continue to fall as they edge towards the oversold. The MACD diff just converged on the downside, pointing to growing strong selling pressure. A break below 50 DMA at 1720 would confirm the outlook for lower prices and the three black crows formation, a clear bearish sentiment. This may pave the way for lower prices to 200 DMA at 1710 with the tertiary level at 1700. Conversely, appetite above 50% fib level resistance of 1730 would suggest higher prices and a close above 1750, setting the scene for higher prices. The indicators point to a further decrease in prices in the near term.