NY 2nd Month Sugar Futures
NY sugar strengthened yesterday as protracted buying pressure triggered a close on the front foot at 19.70. The stochastics are rising, with %K/%D is diverging on the upside in the overbought. The MACD diff is positive and diverging. Growing bullish candle body suggests growing buying pressures. Indeed, the volumes spiked to February levels on Thursday. This could set the scene for higher prices to break above 19.75. This would confirm the trend for rising prices, up to 20.00 and 20.38. On the downside, a breach of support at 19.50 would strengthen the case for a change of momentum. This could also trigger losses towards 10 DMA at 19.41 before 19.00. Indicators are overbought, however, to confirm the outlook for rising prices, futures need to break above 19.75.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened above the previous day’s close, prompting a close on the front foot at 539.40. The stochastics are rising and diverging, with %K/%D, just converging on the upside and rising, a strong buy signal. The MACD diff is negative and converging on the upside, outlining the strength in the market. Buying pressure has been growing, and a recent close above the key resistance level of 10 DMA suggests an increased appetite for higher prices. If prices can gain a footing above the 540 level, the bulls could then target 547.90 in order to regain upside conviction. Alternatively, a break back below 10 DMA at 534.47 could set the scene for lower prices at 531.50, which is seen providing robust support from the downside. We anticipate prices to remain on the front foot in the near term.
NY 2nd Month Coffee Futures
NY coffee futures weakened yesterday as futures failed into the resistance at 40 DMA and closed at 226.15. The stochastics are about to converge on the downside as they emerge from overbought. The MACD diff is positive and converging, pointing to growing selling pressure. A break below 10 DMA at 224.47 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 221, with the tertiary level at 212.60. Conversely, the reaffirmation of support above 10 DMA would suggest higher prices and a close above 40 DMA at 230.75, setting the scene for higher prices towards 100 DMA at 234.04. Yesterday’s candle body and the indicators are pointing to a further increase in prices in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday after investors rejected prices above 2104, prompting a close at 2066. The stochastics are falling, with RSIs in neutral territory; the %K/%D is diverging on the downside, about to enter the oversold territory. The MACD diff is negative and diverging, indicating improving sentiment on the downside. To confirm another bearish candle, prices need to break below the support level at 2019 before the 2000 level. Tertiary support stands at 1987, a break below would confirm the three black crows formation. On the upside, futures need to close back above 10 DMA at 2119 and then 40 DMA at 2145 in the near term. Near term momentum is on the downside, and the resistance at 10 DMA has created a robust resistance.
NY 2nd Month Cocoa Futures
NY cocoa futures opened higher day-on-day, closing at 2627. The stochastics are falling, but %K is seen tailing off on the upside, which could suggest a change of momentum in the near term. The MACD diff struggled to point out an outlook. On the upside, futures need to break below the robust resistance levels of 40 and 10 DMA at 2629 and 2636, respectively, to trigger the momentum. Prices would then need to take out the 2667 level. Conversely, an appetite for prices below 2600 could trigger a test of support of 100 DMA at 2564. 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 struggle to point out an outlook, and subdued volumes point to market uncertainty.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 1788. The RSI is rising, while %K/%D is about to converge on the upside. The MACD diff is positive and diverging, confirming rising buying pressures. On the upside, a break above the 1800 level could trigger gains through the 76.4% fib level at 1813. On the downside, a break below the support levels of 50 and 100 DMA at 1763 and 1742 could trigger losses back towards 1700, break below this level would confirm the outlook of lower prices in the longer term. For the last couple of weeks, the futures found resistance at the 1800 level; however, indicators highlight that the selling pressure is subsiding, and the bullish outlook is on the horizon.