NY 2nd Month Sugar Futures
NY sugar futures sold off yesterday as a lack of appetite for prices above 18.50 triggered a close below at 18.07. The stochastics are falling once again, with %K/%D edging back into the oversold, and this could confirm further downside momentum. The MACD diff is negative and diverging, supporting the outlook for lower prices. A break of 18.00 support may pave the way for lower prices to 17.48. On the upside, if prices can take out the 10 DMA at 18.41 and then 100 DMA at 19.00, this would confirm the upward trend. Another protracting selling pressure confirms the impetus for downside momentum. Although oversold, we believe that there is a further appetite for lower prices in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar weakened yesterday as protracted selling pressure triggered a close on the back foot at 526.20. The stochastics are showing signs of convergence on the downside, and the RSI has also edged lower, sending a sell signal. The MACD diff is negative and diverging. A full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 100 DMA support level at 523.57. This would confirm the trend for falling prices, down to 520. On the upside, resistance at 40 DMA at 535.27 has proven to be strong, and an appetite above that level would strengthen the bullish momentum. This could also trigger gains towards the 540 level. The bearish engulfing pattern suggests an impeding market downturn, and we expect prices to continue to fall in the near term.
NY 2nd Month Coffee Futures
NY coffee futures gapped lower yesterday, but support at 221 caused the market to close at 221.05. The stochastics are falling, with %K/%D converging on the downside and now falling, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm this momentum, a break below support at 221 could set the scene for 212.60 and then 209.65. On the upside, to suggest the outlook of higher prices, futures need to close back above all the DMAs at around 225 and then target 230. The narrow candle body with short upper and lower wicks points to a lack of appetite below the robust support while the negative trend is continuing.
Ldn 2nd Month Coffee Futures
Ldn coffee futures sold off yesterday after investors rejected prices above 2010, prompting a close below 2000 to 1961, the lows not seen since August last year. The stochastics are falling, with %K/%D in 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 1952 support level before the 1900 level. On the upside, to regain upside conviction, futures need to close back above 2010 and then 10 DMA levels at 2034 in the near term. Near-term momentum is on the downside, the close below the long-term support confirms this trend.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher yesterday after opening lower day on day to close at 2315. The stochastics are falling, with the %K/%D now oversold, and the MACD diff is negative and diverging. A break of 2300 could trigger losses through 2268. On the upside, a break above 2317 could set the scene for bullish momentum to test 2333. After the last session’s market indecisiveness – the spinning top formation – as prices struggle below 2300, it could point to an end to the recent bearish momentum in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 1725. The RSI is rising, while %K/%D is about to converge on the upside out of the oversold. Likewise, the MACD diff is converged on the upside, a waning selling pressure. On the upside, finding support above 1730 could trigger gains through 1750, the recent highs, towards the DMAs. On the downside, a break below the trend support at the 1710 level could trigger losses back towards 1700. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer lower wick signals that the buying pressure is growing, and the near-term bullish outlook could be on the horizon.