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NY 2nd Month Sugar Futures

NY sugar edged higher yesterday as intraday trading caused futures to test support at 17.48 once again; the market closed higher at 17.70. Stochastics are falling, and %K/%D is seen diverging on the downside, and %K is now in the oversold territory. The MACD diff is negative and diverging, highlighting further downside momentum. To maintain another bullish candle and a double bottom formation, prices need to close above previous day highs and 10 DMA at 18.10 and then target trend resistance at 18.45. On the downside, the rejection of prices above 17.80 could trigger losses back to 17.48 before targeting 17.29. The candle closed near the previous day’s lows, suggesting a lack of appetite below current levels, but the narrow candle body confirm the uncertainty about the change of trend, and the indicators are pointing to further downside momentum. Additionally, inside bullish candle could point to a continued bearish trend in the near term.

Ldn 2nd Month Sugar Futures

Lnd sugar held the nerve yesterday as intraday trading caused futures to close at 483. RSI is rising marginally, and %K is tailing off on the upside near the oversold, suggesting we could see a change of trend in the near term. The MACD diff is negative and was flat in comparison to the previous day. To maintain positive momentum, prices need to close above 484.50 and then target 10 DMA at 489.26 before 40 DMA at 493.49. On the downside, the rejection of prices above 484.50 could trigger losses back to 480 before targeting 477. The futures formed a bullish harami cross, which is a signal for the end of the downtrend, and indicators point to an end of that momentum.

NY 2nd Month Coffee Futures

NY coffee prices gained ground yesterday but found resistance at 244.75, closing below at 244.50. The stochastics favour the upside, and the MACD diff just converged on the upside, a strong buy signal suggesting an improved outlook. If futures are to break above the near term resistance at 244.75, this could trigger gains to 250 and 252.35, where is would confirm the ascending triangle formation. On the downside, rejection of prices around near term resistance could trigger losses back through 10 DMA at 237.46 and 40 DMA at 235.04. Superseding this level, support stands at previous trend support at 234.05. The double top formation points to a lack of appetite above current prices, but the indicators point to further upside pressures in the near term.

Ldn 2nd Month Coffee Futures

Ldn coffee futures edged higher yesterday, breaking above resistance at 10 DMA and closing at 2220. The stochastics are rising, with %K/%D just diverging on the upside, and the MACD diff is negative and converging, pointing to further upside momentum. The reaffirmation of support at 10 DMA at 2196 could set the scene for higher prices back to break the 100 DMA level at 2223. On the downside, futures need to break below the support of 10 DMA in order to end the recent sessions’ bull trend. This would send futures lower to 2173. The market needs to gain a footing above the 40 DMA in the immediate term to improve the outlook.

NY 2nd Month Cocoa Futures

NY cocoa strengthened yesterday, as marginal buying pressure triggered a close on the front foot at 2690. The stochastics are rising, with %K/%D is diverging on the upside out of the oversold. The MACD diff is positive and diverging. If the bull run is to persist, the futures need to break above 2700, this could set the scene for higher prices to break above the resistance at 2726. On the downside, a breach of support at 2675 would strengthen the bearish momentum. This could also trigger losses towards 2653 before 10 DMA at 2594. Indicators point to higher prices, however, narrowing candle bodies suggest a diminishing appetite for further bullish momentum. We expect the bull trend to slow down in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa futures edged higher yesterday as prices closed at 1797. The indicators continue to favour the upside, with %K/%D diverging to the overbought and MACD diff just converged on the upside, suggesting growing buying pressures. A break below the 61.8% fib level at 1767 would bring into play the recent support level at 1750. In order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 1800 and then target the recent highs of 1813 in the near term. The hanging man candle formation suggests waning buying pressure, and we saw futures struggle above 1800 in the last couple of sessions. The fall today would confirm the change of trend in the near term.

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