NY 2nd Month Sugar Futures
NY sugar futures held their nerve yesterday, causing the market to close at 500.40. The stochastics are struggling to point out an outlook, with %K/%D fluctuating around the oversold territory, and the MACD diff is negative and flat, pointing to a lack of appetite for either way. On the upside, futures need to close back above 18.83 and then target 10 DMA at 18.88. The 10 DMA is closing in and supporting prices on the upside. Likewise, on the downside, a break below the robust support of 100 DMA at 18.67 could set the scene for 18.50, the March lows. The narrow candle body with longer lower wicks points to more appetite on the upside, but the futures need to break out of current resistance to confirm the near-term outlook.
Ldn 2nd Month Sugar Futures
Lnd sugar futures failed above the previous day’s highs yesterday as intraday trading caused them to close at 508.90. The stochastics are fluctuating, with %K/%D converging on the upside recently but still oversold; the MACD diff is negative and converging, which could point to rising upside pressures. The rejection of prices at 100 DMA at 506.27 once again has formed a candle with a short body but a longer lower wick, confirming a lack of appetite for lower prices. If support at 100 DMA at 506.27 is broken, we could see futures test 500. On the upside, if prices were to break back above 10 DMA at 512.57, this could trigger a test of 520 and then 40 DMA at 526.90. To confirm another bullish candle, futures need to take out 10 DMA. A break above this level would confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
Prices weakened yesterday as moderate selling pressure triggered a close back above 10 DMA at 214.96. The MACD diff is negative and converging. The stochastics are rising, and now the %K/%D has left the oversold. The inside day yesterday could suggest a lack of appetite for lower prices, with yesterday’s close above 10 DMA could point to further upside momentum. On the downside, if the futures do break below this level, we could see a test of 212.60 and 209.65 once again. Conversely, a rise above the resistance at 221 has held in recent weeks, and a break above could trigger further gains to 40 DMA at 221.81 before trend resistance. The indicators point to further upside momentum, but candles need to break above the near term resistance to confirm this.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday as moderate selling pressure triggered a close at 2058. The stochastics are falling, yet converging, with the %K seen tailing off on the upside; however, the MACD diff is negative and converging. A break of the 2010 level could trigger losses through 2000, with the tertiary level at 1952. On the upside, a break above previous sessions’ highs and 10 DMA at 2083 could set the scene for a test of 2100, pointing to a change of trend for more bullish momentum. Yesterday’s bearish spinning top formation points to market indecisiveness about the outlook for higher prices, and we need the futures to break support at 2040 to confirm the outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures softened yesterday after testing the support level of 2436 once again. The market closed marginally lower at 2433. The stochastics are falling, with %K/%D diverging on the downside, with %K now oversold, and the MACD diff is negative and diverging. The reaffirmation of support at 2436 could set the scene for higher prices back to test the 2500 level up to 10 DMA at 2518. On the downside, futures need to break below the support of 2436 in order to confirm the bearish trend. Indeed, this support level has been tested and broken below marginally for the last couple of sessions, suggesting an appetite for prices below this level. The long lower wick confirms this.
Ldn 2nd Month Cocoa Futures
Prices weakened yesterday as selling pressure triggered a close at 1766. The MACD diff is negative and diverging. The stochastics are falling.. The RSI is also falling, but the inside day yesterday suggests a continuation of the recent trend. In order to confirm the recent trend on the upside, prices need to break 1800 and 76.4% fib level at 1813. Conversely, on the downside, DMA support levels remain robust at 1760 levels, and if these levels are broken, this could trigger a strong downside momentum. The indicators suggest the outlook on the downside, but the support at these levels has been strong, and we expect them to hold today.