NY 2nd Month Sugar Futures
NY sugar futures edged lower yesterday as prices failed above the previous day’s closing price and then closed below at 19.83. The indicators favour the downside; the stochastics are falling, with %K/%D diverging on the downside and edging close to the oversold area, and the MACD diff converging on the downside, confirming further selling pressures. A break below the 19.80 level would bring into play the support at 40 DMA at 19.22. On the upside, prices need to find support above 100 and 10 DMA at 20.21 and 20.38, respectively, before targeting 20.50 in the near term. Indicators point to further bearish momentum, and a break of the DMAs suggests growing selling pressures in the near term.Â
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve yesterday as intraday trading saw futures test appetite at 541.25. This level held firm, and the future closed at 547.40. The stochastics are falling, with %K/%D trading closer to the oversold, and the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 540, which could set the scene for futures to take out the 512.50. On the upside, the market needs to take out the resistance of 10 DMA at 565.10 and then the resistance of 100 DMA at 567.52. The candle found support above 540. If the futures break below the current support, we could see prices edge lower.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as intraday trading saw prices close at 244.85. %K and %D are flattening out in the overbought, and MACD diff is positive and diverging, suggesting some appetite for higher prices before potential softness in the near term. A break below 240 towards the 10 DMA at 233.12, respectively, would confirm the continued bearish momentum down to 40 DMA. Conversely, appetite for prices above the 250 level could trigger a test of resistance of 250. The candle struggled to break above the near-term support, but the gravestone doji candle is usually a signal of downside momentum. If futures can break below the 240, that would confirm the indicators in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading saw prices close at 4576. The %K/%D is edging higher into the overbought, signalling growing upside pressures. The MACD diff is positive and diverging, suggesting growing buying pressures. Futures need to break back above 4600 first to trigger the momentum on the upside. A break above this level towards 4700 would confirm the growing bullish momentum. Conversely, appetite for prices back below could set the scene for 4500. A long-legged doji candle shows indecision about either direction as prices trade near the highs; the length of the wicks also points to increased volatility during the day. The indicators highlight the impetus for more upside, but futures need to close above the 4700 level first.
NY 2nd Month Cocoa Futures
NY cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 8590. The RSI is rising, while %K/%D is diverging towards the overbought. Likewise, the MACD diff is positive and diverging, confirming growing buying pressures. On the upside, finding support above the 40 DMA at 8254 could trigger gains through 9000 towards 10000. On the downside, a break below the 8000 level could trigger losses back towards the 10 DMA at 7816. That level has been supporting futures prices, and a break below it would signal strong selling pressure. A longer candle signals that the buying pressure is growing, and the bullish outlook is on the horizon.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures strengthened yesterday as protracted buying pressure triggered a close on the front foot at 7032. The RSI is rising, while %K/%D is diverging towards the overbought. Likewise, the MACD diff just converged on the upside, a strong buy signal. On the upside, finding support above 7000 could trigger gains through 7348, the recent highs, towards 8000. On the downside, a break below the 10 DMA at 6509 level could trigger losses back towards 6000. A longer lower wick signals that the buying pressure is growing, and we could see further strength in the near term.
