NY 2nd Month Sugar Futures
Sugar prices declined yesterday after failing into to resistance at 20.38, prompting a close at 20.18. The stochastics are still trending higher and stand in overbought territory but are starting to converge suggesting waning buying pressure. The MACD diff is positive but momentum is also waning following yesterday's session activity. Volumes are high but increased into the close as prices edged lower. The upside trend is on the upside but the rejection of 20.38 may set the scene for a correction back towards 19.75 or trend support to reaffirm the trend. A break through 20.38 would confirm the ascending triangle. We expect a correction in the near term back towards trend support.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower yesterday, prices were bid below 547.90 and this triggered a close at 548.80. The stochastics are rising with the %K stochastic just breaking into overbought. The MACD diff is rising and diverging in positive territory, and this could set the scene for higher prices towards 555. The market posted a recent high yesterday and the market needs to take out this level to confirm the recent trend. Volumes have been strong, especially in the recent leg higher and this indicates conviction in the market. To confirm the improved sentiment and bullish candle last Friday we need to see prices break 552 and test 555. Lack of appetite above 550 may trigger a correction in the near term and reaffirm trend support.
NY 2nd Month Coffee Futures
NY coffee futures suffered yesterday after as mild selling pressure saw futures close at 233.55, below the 100 DMA. The stochastics are rising in overbought territory and continues to trend higher but are just starting to converge. The MACD diff is positive suggesting higher prices in the near term but the RSI is topping out following yesterday's activity. The close below the 100DMA could set the scene for lower prices towards the 40DMA at 229.41. In order to continue the uptick in prices, futures need to break back above 240 in strong volumes to indicate conviction. Prices and the indicators while positive are losing momentum and the stochastics have given a sell signal, triggering losses to the 23.6% Fib level in the immediate term.
Ldn 2nd Month Coffee Futures
Ldn coffee prices held their nerve yesterday as intraday trading saw prices test resistance at 2137.68 and prices closed at 2111. The stochastics are rising towards neutral territory and the MACD diff is positive and starting to diverge. In order to confirm higher prices in the near term, futures need to take out the 40 DMA and trend resistance at 2151. This could set the scene for higher prices towards 2200 and the 100 DMA at 2212. Conversely, rejection of the 40 DMA once again could set the scene for lower prices towards 2078 and then 2063. This would help confirm the rejection of trend resistance in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures declined yesterday as traders rejected prices above 2667, prompting a close at 2634. The stochastics are neutral which is indicative of the recent price action, the other indicators also lack conviction. The volumes are falling marginally, the market continues to fail into 2700 and this could set the scene for prices towards trend support and the 50% fib level. A break above this level could would help to confirm the prospect of higher prices to 2726. A close below 2600 would set the scene for lower prices towards 2570. We expect further consolidation in the near term as the market lacks conviction.
Ldn 2nd Month Cocoa Futures
Ldn cocoa prices declined yesterday after prices failed into 1837, this prompted a close at 1805. Activity this morning has seen prices find support below 1800, this is pattern we have seen in recent days. The stochastics are rising towards overbought but price action is struggling below resistance. In order to confirm higher prices towards 1900, futures need to break above 1837 and then trend resistance, this should also be accompanied by higher volumes and a new high from the stochastics. The MACD diff is positive, but the market but repeated lack of appetite at 1837 may set the scene for lower prices back to 1750 and then the 50% fib level at 1730.
