NY 2nd Month Sugar Futures
NY sugar futures opened higher yesterday, but a lack of risk-on appetite prompted futures to close lower on the day at 21.27. The stochastics continued to fall, with %K/%D diverging on the downside, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the trend change, futures need to break below the robust 21.00 level before targeting recent lows of 20.76 and 20.10, respectively. On the upside, a break above 22.00 could set the scene for bullish momentum towards the 10 DMA at 22.29. with the recent candles struggling below the 21.00 level, the indicators are indicative of capped upside potential rather than of the trend change. We expect futures to remain above the 21.00 in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures failed above the previous day’s highs yesterday as intraday trading caused them to close at 586.10. The stochastics are fluctuating, with %K/%D diverging on the downside; the MACD diff is positive and converging, which could send a strong sell signal in the near term. The rejection of prices at 10 DMA at 589.22 once again has formed a candle with a short body but a longer lower wick, confirming a lack of appetite out of current ranges. If support at 580.70 is broken, we could see futures test 574. On the upside, if prices were to break back above 10 DMA, this could trigger a test of 600. To confirm another bullish candle, futures need to take out 10 DMA first. A break above this level would confirm the outlook for higher prices.
NY 2nd Month Coffee Futures
NY coffee futures edged higher yesterday as intraday trading saw prices supported above the 40 DMA level. The market closed at 255.65. The %K/%D is diverging on the downside. The MACD diff is negative and diverging, suggesting growing selling pressure. The indicators point to lower prices in the near term, and to confirm the rejection of the support, prices need to take out the 40 DMA. A break below this level towards the regression trend support, currently at 248, would confirm the strong bearish momentum. Conversely, appetite for prices above 250 could trigger a test at the 10 DMA level at 262.36. Two opposite candles point to market uncertainty around price movement, and futures need to take out near-term support to set the scene for further bearish momentum. In the meantime, the longer-term trend on the upside remains intact.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged higher yesterday, struggling below the 4664 level and closing at 4859. The stochastics are rising, with %K/%D converging on the upside, and the MACD diff is also negative and converging, suggesting a possible trend change on the upside. A break above and the reaffirmation of support above 40 DMA at 4871 could set the scene for higher prices back to test the 5000 level. On the downside, futures need to break below the support of 4664 and the 100 DMA at 4442 in order to end the longer-term bull trend. The market needs to gain a footing completely above the 40 DMA in the immediate term to improve the outlook on the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher yesterday as intraday trading saw prices supported above the 6000 level. The market closed at 6157. The %K/%D is converging on the upside in the oversold. The MACD diff converged on the upside, sending a strong buy signal. The indicators point to higher prices in the near term, and to confirm current support, prices need to take out the 10 DMA level at 6306. A break above this level towards 6720 would confirm the strong bullish momentum. Conversely, appetite for prices back below 6000 could trigger a test of 5824; tertiary resistance stands at 5400. Recent doji candles point to market uncertainty out of current ranges, and futures need to take out near-term resistance to set the scene for further bullish momentum.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures opened lower but managed to close higher day-on-day at 4511. The stochastics are converging on the upside in the oversold, sending a strong buy signal. The MACD diff just converged on the upside, sending a strong buy signal. On the upside, futures need to break above the resistance levels of 10 DMA at 4526 and then 5000 to trigger the momentum. Prices would then need to take out the 5359 level to confirm the longer-term outlook. Conversely, an appetite for prices below the trendline, which now forms the descending triangle formation, could trigger strong selling pressures. A dragonfly doji candle shows rejection of higher prices, but the indicators point to an end of the bearish sentiment we have seen in the last couple of days. Futures are likely to struggle on the upside in the near term.
