NY 2nd Month Sugar Futures
NY sugar futures strengthened yesterday after rebounding from the support level of 18.15 to close at 18.94. The %K/%D converged on the upside and is now leaving the oversold area. The MACD diff is negative and converging, a strong buy signal. To confirm this, the 19.00 level needs to be broken completely first before testing 10 DMA at 19.13. On the downside, if today’s candle breaks back below the 18.63 support, it could set the scene for prices back to 18.10 and robust support of 18.00. A long bullish candle with little shadow highlights a growing appetite on the upside. To confirm the indicators’ outlook on the upside, the futures need to break the resistance of 10 DMA in the near term.
Ldn 2nd Month Sugar Futures
Prices gained ground yesterday as support at 505 held strong, causing prices to close marginally higher at 519.80. The MACD diff is negative and converging. The stochastics are also rising on the upside. Indeed, yesterday’s candle suggests a reversal of the recent trend on the upside, and we expect prices to edge higher to 525. If this level is broken, prices could target 10 DMA at 530. On the downside, a fall below the 512.60 level could trigger losses to recent lows of 505. The indicators point to growing upside momentum, but candles need to break above the near-term resistance of 525 to confirm this.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday after testing the support level of 40 DMA once again. The market closed higher at 233.55. The stochastics continue to fall, with %K/%D diverging on the downside in the oversold, and the MACD diff is negative and diverging. The appetite back below 40 DMA at 231.99 suggests that prices could set the scene for a test of the 220 level, the recent low. However, support at 230 now remains robust. On the upside, futures need to break above the near-term resistance of 233.35 in order to confirm the upside trend, confirming the hammer formation. Indeed, the 230 support level has been robust in the last couple of sessions, and a hammer candle formation could point to upside momentum in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve yesterday as intraday trading caused the market to close above the robust trend support at 4395. However, prices gapped lower on today’s open, trading at 4192 at the time of writing. The stochastics are falling, with %K edging towards the oversold, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the outlook for lower prices, futures need to hold below the 40 DMA today and then target 4000. On the upside, the rejection of prices below the 40 DMA could trigger gains back towards 4338. A break below this level alongside the 40 DMA today confirms the growing trend on the downside. We expect futures to be on the back foot today.
NY 2nd Month Cocoa Futures
NY cocoa futures opened higher yesterday, but resistance at 7030 caused futures to close lower on the day at 6740. The stochastics have just crossed the oversold territory, and the MACD diff is negative and flat. On the downside, a break of 6500 could trigger losses through 100 DMA at 6441, with the tertiary levels at 6000. On the upside, a break above 7025 could set the scene for bullish momentum towards 7248. The candle closing lower on the day could be a sign that futures lack the appetite for higher prices, and the indicators point to continuing downside momentum. To confirm this, the robust level has to be taken out first.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened yesterday after finding support at 100 DMA. The market closed at 5297. The stochastics are in the oversold territory, but the MACD diff is positive and converging, suggesting downside pressure is weakening. A break below the 100 DMA level would bring into play the 5000 level. On the upside, futures need to gain back above 10 DMA in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 6000; this could strengthen the trend on the upside in the long run. The long candle points to an increased appetite on the downside, and we could see the price edge lower in the near term.
