NY 2nd Month Sugar Futures
NY sugar futures softened marginally yesterday as moderate selling pressures saw futures close below 18.17 at 18.08. The stochastics have converged on the downside, with the % K falling towards oversold, the gap between them suggest downside momentum. Likewise, the MACD diff is positive and converging on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 18.00, which could set the scene for futures to take out 17.66. On the upside, the market needs to take out resistance at 10 DMA at 18.36 and then resistance at 40 DMA at 18.54. The trend resistance caps prices, and a break below 10 DMA suggests growing impetus on the downside in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday as intraday trading saw prices close at 490.50. The RSI is falling, and %K and %D are diverging on the downside. The MACD diff is positive and converging marginally, suggesting some appetite for lower prices, but futures need to break below the support at 490 to trigger the momentum. A break below this level towards 484.50 would confirm the strong bearish momentum. Conversely, appetite for prices above the 40 DMA and 10 DMA at 494.10 and 496.70, respectively, could trigger a test of resistance of 500. A gravestone doji candle shows rejection of lower prices, we could see a change of momentum to more bullish in the near term.
NY 2nd Month Coffee Futures
Prices weakened yesterday as protracted selling pressure triggered a close below the 40 DMA support level; the market closed at 232.65. The stochastics are falling, and the MACD diff just converged on the downside, suggesting strong selling momentum. In order to confirm the outlook for higher prices, futures need to break above the current resistance at 10 DMA at 238.57 and then 244.75. In the longer term – they need to hold above trend support and then break above 252.25 to confirm ascending triangle pattern. Conversely, a break below the 232.10 support line could set the scene for a test of 229.65. The formation is similar to the falling three methods and could be a sign that the bears lack the appetite for lower prices, but futures need to confirm this by edging higher in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures weakened yesterday, falling below the 2200 level. The market closed at 2174. The stochastics are falling in the oversold, and the MACD diff is also negative and diverging, pointing to further decline in prices. Futures need to break below support at 2173 before targeting a 23.6% fib level at 2139. Conversely, if support below 2173 can hold firm, this could trigger gains towards the resistance at 2210. We expect the momentum to remain on the back foot, but the futures need to break below near term support to confirm this.
NY 2nd Month Cocoa Futures
NY cocoa futures sold off yesterday as lack of appetite for prices above 2540 triggered a close at 2506. The stochastics are falling, and this could improve downside momentum. The MACD diff is negative and diverging, supporting the outlook for lower prices. A break of 2500 support may pave the way for lower prices to the 61.8% fib level at 2475. On the upside, if prices can take out the 50% fib level at 2540 and then 2567, this would confirm the change of trend, with the psychological level at 2600. We believe that there is an appetite for lower prices in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened yesterday after closing below 1730 at 1716. 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 200 DMA at 1711. A break below this level would bring into play 1700. On the upside, futures need to gain back above 17300 in order to confirm upside momentum. Appetite above this level could trigger gains towards 1750; this could strengthen the trend in the long run on the upside. A close below 50 and 100 DMA points to growing downside momentum, and the indicators confirm the further weakness in the near term.