NY 2nd Month Sugar Futures
NY sugar futures failed above the previous day’s highs yesterday as moderate buying pressure caused futures to close at 19.50. The stochastics are rising, with %K/%D converging on the upside back into the overbought, and the MACD diff is about to converge on the upside, suggesting higher prices in the near term. However, the reaffirmation of resistance yesterday at 19.50 has formed a shooting star candle, suggesting a waning appetite for higher prices. If prices were to break back above this robust level, this could trigger a test of 19.75 and 20.00. To confirm the triple top formation, futures need to take out 10 DMA at 19.3` and then robust support at 19.00. The indicators are overbought but still showing more upside momentum; to confirm this, the futures need to break above the near term resistance.
Ldn 2nd Month Sugar Futures
Ldn sugar futures broke above 10 DMA yesterday as prices closed at 535.90. The stochastics are falling, but %K is seen tailing off on the upside, and the MACD diff is negative and converging, pointing to an approaching buy signal. The rejection of resistance may prompt a break back towards 540, a subsequent breach of this level could trigger gains towards 547.90, confirming an ascending triangle formation. On the downside, a break of 10 DMA at 533.86 and trend support may prompt futures to retest 520. Indicators point to growing momentum on the upside in the near term.
NY 2nd Month Coffee Futures
NY coffee futures opened higher-day on-day but lost marginal ground to close at 231.25. The %K is now overbought and is seen rising further. The MACD diff is positive and diverging, suggesting strong appetite for higher prices in recent days, but futures need to break below the robust resistance levels of 40 and 100 DMA at 232.10 and 233.86, respectively to trigger the momentum. Prices would then need to take out the 240 level. Conversely, an appetite for prices below 230 could trigger a test of support of 10 DMA at 233.77. A dragonfly doji candle shows rejection of higher prices, and could point to an end of the bullish sentiment we have seen in the last couple of days. The indicators being overbought could also confirm the change of momentum in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures weakened yesterday as futures failed above the resistance at 10 DMA once again and closed at 2110. The stochastics continue to decline, and the MACD diff is about to turn negative, a clear sell signal. A break below support at 2104 would confirm the bearish engulfing candle; however, this level has held firm in recent weeks. This may pave the way for lower prices to 2078. Conversely, the reaffirmation of support at this level could suggest higher prices and a close above 10 DMA at 2131, setting the scene for higher prices towards 40 DMA at 2154 and 2200. Yesterday’s candle body suggests an appetite for lower prices and could trigger a break of support. The indicators are pointing to a further decline in prices in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures weakened yesterday as futures failed into the resistance at 10 DMA and closed at 2589. The stochastics continue to fall, and the MACD diff is positive and converging, pointing to waning buying pressures. A complete break below 2600 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 2562. Conversely, the reaffirmation of support above at 2600 would suggest higher prices and a close above 10 DMA at 2640, setting the scene for higher prices towards 2667. Yesterday’s candle body being below Monday’s suggests an appetite for lower prices, and the indicators are pointing to a further decrease in prices in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa buckled yesterday as protracted selling pressure triggered a test of 100 DMA and closed on the above at 1746. The stochastics are falling, 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 50% fib level at 1730 if 100 DMA at 1741 is breached. A break below this would confirm the trend for falling prices, down to trend support. On the upside, resistance at the 61.8% fib level at 1767 has been formed, and an appetite above that level would strengthen the bullish momentum. This could also trigger gains towards the trend resistance at 1800. Upside tails and growing candle body points to an increased appetite on the downside, however the futures need to break completely below 100 DMA to confirm the outlook.
