NY 2nd Month Sugar Futures
NY sugar gained ground yesterday as buying pressure triggered a close on the front foot at 18.50. The stochastics are rising out of the oversold, as the MACD diff is negative and converging, signalling a buy trend in the near term. This suggests we could see higher prices towards the resistance at 18.83, but the market needs to take out immediate trend resistance at 10 DMA at 18.55 beforehand. On the downside, if the support around 18.17 is taken out, we could see prices retreat back through to 18.00 to 17.48. A longer upper wick on Tuesday points a lack of appetite for higher prices, so futures need to take out the 10 DMA in order to confirm the outlook on the upside.
Ldn 2nd Month Sugar Futures
Ldn sugar futures jumped higher yesterday, but resistance at 530.20 caused the futures to close at 529.90. The stochastics are gaining ground out of the oversold territory, and the MACD diff is negative and converging, suggesting we could see higher prices in the near term through near-term resistance of 530.20. To confirm futher upside momentum, futures need to gain back above 40 DMA at 533.32. The appetite above that level could trigger gains towards the 540 level; this could strengthen the trend in the long run on the upside. On the downside, a break below 100 DMA at 521.17 would bring into play the 512.90 level, which could set the scene for 506. Longer lower wick points to an increased appetite for higher prices. We expect futures to gain footing in the near term, but resistance at 10 DMA needs to be broken first.
NY 2nd Month Coffee Futures
NY coffee weakened yesterday as protracted selling pressure triggered a close on the back foot at 217.75. The stochastics are falling, and the RSI has also edged lower. The MACD diff is negative and diverging, suggesting lower prices in the near term. A full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 212.60 support level. This would confirm the trend for falling prices, down to 209.65. On the upside, resistance at 40 DMA at 223.89 has proven to be strong, and support above that level would strengthen the bullish momentum. This could also trigger gains towards the 10 and 100 DMAs at 227. The strong bearish candle suggests an impeding market downturn, and we expect prices to continue to fall in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened yesterday after prices failed above the 10 DMA level, prompting a close on the back foot at 2017. The stochastics are falling and diverging, with %K in the oversold territory, and the MACD diff is also diverging on the downside, outlining the weakness in the market. Selling pressure has been strong; yesterday's close below the key support levels suggests an increased appetite for lower prices. A break of 2010 could set the scene for lower prices at 2000. Alternatively, if prices can gain a footing back above the 10 DMA level at 2071, the bulls could then target 40 DMA at 2082 in order to regain upside conviction. We anticipate prices to remain on the back foot in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve yesterday as intraday trading saw prices close at 2402. The RSI is falling, and both %K/%D and the MACD diff are about to converge on the downside, outlining the upcoming sell trend. To confirm this, the futures need to break below the psychological levels of 2400 to trigger the momentum. A break below this level towards 2333 would confirm the strong bearish momentum. Conversely, an appetite for prices above the 40 DMA at 2473 could trigger a test of resistance of 2500. A gravestone doji candle shows rejection of higher prices above 10 DMA and could point to a continuation of the moderate bearish sentiment we have seen in the last couple of weeks. We anticipate prices on the back foot in the near term.
Ldn 2nd Month Cocoa Futures
Prices weakened yesterday as selling pressure triggered a close at 1738. The MACD diff is positive and converging. The stochastics are about to converge on the downside. The RSI is also falling, and the inside day yesterday suggests a continuation of the recent trend on the downside. Dips in the market have been well bid, and a candle break below the support at 1730 could point to further downside momentum, with prices falling below the trend support to 1700. Conversely, a break above 1750 could trigger gains to 1759. The indicators point to further downside momentum, but candles need to break below the near-term support to confirm this.