NY 2nd Month Sugar Futures
NY sugar futures opened marginally higher, however, prices struggled above 19.50 once again and closed at 19.31. The stochastics are rising, with %K/%D seen diverging on the upside in the overbought. The MACD is positive and diverging, but the momentum is slowing. The rejection of higher prices may prompt a break back towards support at 100 DMA at 18.64; a subsequent breach of this level could trigger losses towards 18.57 and 10 DMA at 18.40. On the upside, a break of resistance at 19.50 may prompt futures to test 20.00. 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, and the indicators point to a slowing upside momentum, but the future needs to break below 100 DMA support to confirm the outlook.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground yesterday but struggled above 525 once again to close at 524.50. The stochastics are beginning to converge, with the %K/%D flattening out in the overbought, as the MACD diff is positive and diverging, but momentum is slowing. This suggests we could see a change in momentum in the near term. To confirm this, prices need to break below firm support at 517.80. If the prices break through this level, we could see prices retreat back through 510. On the upside, a break above 525 and 530 could signal further upside potential. The bullish candle with a long body and long upper and lower wicks after a similar bearish candle point to uncertainty to break out of the current support and resistance.
NY 2nd Month Coffee Futures
NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 232.90. The RSI is rising, while %K/%D has converged on the upside in the oversold, a strong buy signal. The MACD diff is negative and converging, confirming waning selling pressures. On the upside, finding appetite above the 10 DMA at 232.65 could trigger gains through 40 DMA at 240.35 towards 247.53 – a trend resistance. On the downside, a break below the key support level of 220 could trigger losses back towards 209.65. Yesterday’s candle has been capped at 10 DMA, and a break above that level could set the scene for higher prices in the near term. The bullish engulfing formation highlights that the selling pressure is subsiding, and the bullish outlook is on the horizon.
Ldn 2nd Month Coffee Futures
Ldn coffee futures gained ground yesterday as protracted buying pressure prompted a test of the 2100 level to close on the front foot at 2094. The stochastics are rising, and the %K/%D has converged in the oversold territory, highlighting growing buying pressures. The MACD diff is negative and converging. To confirm another bullish candle, futures need to close above 10 DMA at 2097 and then target the 23.6% fib level at 2137. On the downside, the break below 2000 could set the scene for lower prices towards the support of 1952. However, the market struggled below the near term support in recent sessions, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures opened higher yesterday, but the resistance of 40 DMA caused futures to close lower on the day at 2636. The stochastics are seen diverging on the upside, with the %K/%D now rising higher in the neutral territory, and the MACD diff is negative and converging. A break of the 38.2% fib level at 2620 could trigger losses through 10 DMA at 2593, with the tertiary level at 2567. On the upside, a break above 40 DMA at 2643 could set the scene for bullish momentum towards 2675. The spinning top formation has been formed, which points to market indecisiveness about higher prices, however, the indicators point to further upside momentum in the near term.
Ldn 2nd Month Cocoa Futures
Lnd cocoa futures edged above the previous day's closing price, but the bullish momentum was not strong enough, and futures closed at 1768. The stochastics continue to rise, and the MACD diff just converged on the upside, a strong buy signal. The rejection of prices at 2388 has formed a candle with a narrow body but a long wick on the upside, however, lacking the conviction to break above the near term resistance. If prices were to break above 61.8% fib level at 1767 completely, this could trigger a test of 1800. On the downside, to confirm the shooting star formation, futures need to take out 50 DMA at 1768 and then robust support 100 and 200 DMAs at 1734 and 1727, respectively. A break below this level would confirm the outlook for lower prices.