NY 2nd Month Sugar Futures
NY sugar strengthened yesterday as protracted buying pressure triggered a close on the front foot above a robust resistance in the form of shorter-term moving averages at 19.64. The stochastics are rising, with %K/%D diverging on the upside in the overbought. The MACD diff is positive and diverging. A long bullish candle body with no wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 19.80. This would confirm the trend for rising prices, up to the 20.00 level before 20.50, April levels. On the downside, a breach of support back below the 40 and 10 DMAs at 19.01 and 18.90, respectively, would help confirm the bearish momentum. This could also trigger losses towards the 18.00. Indicators point to higher prices, and we expect prices to strengthen further in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar strengthened yesterday as protracted buying pressure triggered a close on the front foot at 548.80. The stochastics are rising, with %K/%D diverging on the upside in the overbought. The MACD diff is positive and diverging. A long bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the robust resistance at 550. This would confirm the trend for rising prices, up to 575. On the downside, a breach of support at 40 DMA at 536.35 would strengthen the bearish momentum. This could also trigger losses towards the 10 DMA at 533.62. Indicators point to higher prices in the near term, but resistance at 550 is crucial to confirm the longer-term outlook on the upside.
NY 2nd Month Coffee Futures
NY coffee futures edged higher to retest the 10 DMA level, closing slightly below it at 226.25. The stochastics are showing signs of convergence on the upside, as %K is seen tailing off, as the MACD diff is negative and continues to diverge slightly. On the upside, if the resistance at the 10 DMA at 226.32 is broken above, futures could test 233 before 240. On the downside, the support level at 220 is robust, and a break below this level could trigger losses to 40 DMA at 116.94. A longer upper wick suggests that there is a lack of appetite above the 10 DMA level. We expect the futures to trade within the current range in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw prices close at 4093. The K/%D is diverging on the downside, and the MACD diff just converged on the downside, outlining the upcoming sell trend. To confirm this, futures need to break below the psychological level of 4000 to trigger the momentum. A break below this level towards the trend support would confirm the strong bearish momentum. Conversely, appetite for prices above the 10 DMA at 4134 could trigger a test of resistance of 4200. 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 sessions. We anticipate prices on the back foot in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher yesterday, breaking above resistance at 10000 and closing at 10110. The stochastics are rising, with %K/%D diverging on the upside, and the MACD diff is positive and diverging. The reaffirmation of support at the current levels could set the scene for higher prices. On the downside, futures need to break below the support of 10 DMA in order to end the recent sessions' bull trend. Indeed, the 10 and 40 DMAs are providing robust support levels. Three white soldiers' formation in the previous sessions confirms the outlook for higher prices, and a break above 10000 highlights the appetite for higher prices. The market needs to gain a footing above this level in the immediate term to improve the outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa prices gained ground yesterday with the appetite for prices above 8000, triggering a close at 8222. The stochastics favour the upside, with the %K/%D strengthening in the overbought, suggesting we could see prices improve in the near term. The MACD diff is positive and diverging, pointing to an improved outlook. Yesterday's long candle body suggests we could see prices challenge 9000 in the near term. In the medium term, futures need to hold above 8500. On the downside, a break below the shorter-term DMA support level could trigger losses back to 7000. Three white soldiers' formation in the previous sessions and the golden cross formation in the DMAs confirm the outlook of higher prices. We anticipate prices will improve today as buying pressure continues.
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