NY 2nd Month Sugar Futures
NY sugar futures gained ground yesterday as buying pressure prompted a test of 19.50 once again. The market closed at 19.06. The stochastics are about to converge in the overbought, and the MACD diff is positive and is converging on the downside, suggesting bearish momentum in the near term. The prices have been supported above 19.00. The fall below this level could trigger losses through 100 and 10 DMAs at 18.64 and 18.61, respectively. On the upside, a breach back above 19.50 would bring into play the firm resistance of 20.00, confirming an inverse hammer formation. Futures need to take out the trend resistance at 2.038 in order to confirm the trend on the upside in the long run. The convergence of DMAs provides strong support/resistance for prices, and if 100 DMA remain firm, we could see prices edge higher.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday as intraday trading saw prices close at 517.70. The RSI is rising, but %K and %D are about to converge on the downside in the overbought, which could be a strong sell signal. The MACD diff is positive and converging, suggesting some appetite for lower prices, but futures need to break below 514.40, firm support, to trigger the momentum. A break below this level towards 10 DMA at 507.05 would confirm the strong bearish momentum. Conversely, an appetite for prices above the 531.50 level could trigger a test of resistance of 540. 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 days. We anticipate prices on the back foot in the near term.
NY 2nd Month Coffee Futures
NY coffee futures edged lower yesterday after prices broke below 227.95, prompting a close at 224.20. The stochastics are falling, with %K/%D converging on the downside in the oversold, and the MACD diff is negative and converging, but the momentum is slowing, pointing to a potential slowdown in recent buying pressure. To confirm the bearish indicators and rejection of prices above 227.95, futures need to take out support at 220 and then target 209.65. On the upside, futures need to close above 10 DMA and then test 229.46 in order to confirm the outlook of higher prices towards 40 DMA at 239.89. We expect futures to weaken in the near term.
Ldn 2nd Month Coffee Futures
Prices weakened yesterday as moderate selling pressure but struggled to close below the 10 DMA; the market closed at 2093. The stochastics are rising, signalling a continuation of upside momentum. The MACD is negative and about to converge, a strong buy signal. Recent candles have not been well bid, and we saw volume diminish, but in order to confirm the change in trend, prices need to break below the current support of 10 DMA at 2077.22 and then 2000, a robust support level. Conversely, a break above the 23.6% fib level at 2137 could set the scene for a test of 40 DMA at 2187. We expect prices to remain supported above the 10 DMA support level in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures increased marginally yesterday as trading saw prices close above 2653 at 2683. The stochastics are seen diverging on the upside, with the %K/%D edging close to the overbought, and the MACD diff just converged on the upside, a strong buy signal. On the upside, a break above 2700 could set the scene for bullish momentum towards 2726. Alternatively, a break of the 40 DMA at 2647 could trigger losses through 2620, with the tertiary level at 10 DMA at 2599. The spinning top formation has been formed, which points to market indecisiveness for further upside momentum, however, a break above the current resistance would confirm further bullish momentum.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot at 1804. The RSI is rising, while %K/%D are diverging on the upside, with %K now in the overbought. The MACD diff is positive and diverging, suggesting higher prices in the near term. On the upside, a complete break above 1800 could trigger gains through a 76.4% fib level at 1813 towards 1830. On the downside, a break below the support level of 50 DMA at 1758 could trigger losses back towards 100 and 200 DMAs at 1734 and 1728, respectively, which would confirm the outlook of lower prices in the longer term. Indicators point to further buying pressures in the near term, and a long candle body points to a growing appetite for higher prices.