NY 2nd Month Sugar Futures
NY sugar strengthened yesterday as protracted buying pressure triggered a close on the front foot just below the robust resistance level of 21.00 at 20.99. The stochastics are rising; %K/%D is diverging on the upside out of the oversold. The MACD diff is negative and converging. A long bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 21.00 completely. This would confirm the trend for rising prices, up to 22.44 and then 22.50. On the downside, a breach of support at the 40 DMA at 20.58 would strengthen the bearish momentum. This could also trigger losses towards the 20.00 level. Indicators point to higher prices, and we expect futures to strengthen in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar strengthened yesterday, as moderate buying pressure triggered a close on the front foot at 585.20. The stochastics are rising, with %K/%D diverging on the upside. The MACD diff is negative and converging. A long bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 590, but prices struggled above that level. This would confirm the trend for rising prices, up to the 600 level. On the downside, a breach of support at 574 would strengthen the bearish momentum. This could also trigger losses towards the 40 DMA level at 554.39. Indicators point to higher prices, but with prices failing above the 590 resistance, futures are capped on the upside.
NY 2nd Month Coffee Futures
NY coffee futures opened higher yesterday, but resistance at 260 caused futures to close lower on the day at 255.50. The stochastics have crossed on the upside and are now rising, and the MACD diff is negative and converging. On the downside, a break of 255.30 could trigger losses through 40 DMA at 253.59, with the tertiary level at 10 DMA at 252.30. On the upside, a complete break above 260 could set the scene for bullish momentum towards the regression line at 269. The candle closing lower on the day could be a sign that futures found robust resistance at 260; however, the indicators point to accelerating upside momentum. To confirm this, this robust level has to be taken out first.
Ldn 2nd Month Coffee Futures
Ldn coffee futures opened higher yesterday but struggled to gain significant momentum, causing futures to close lower on the day at 4778. The stochastics are seen diverging on the upside, with the %K/%D now rising higher out of the oversold territory, and the MACD diff is negative and converging. A break of the 10 DMA level at 4753 could trigger losses through 4664, with the tertiary level at 4523. On the upside, a break above the 40 DMA at 4946 completely could set the scene for bullish momentum towards 5000. Futures are being capped by the 10 and 40 DMA levels from the support and resistance level, respectively. However, with strengthening indicators, we expect prices to edge marginally higher in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures jumped higher yesterday and managed to close above the robust resistance level of 7000 at 7123. The indicators suggest that we could see higher prices in the near term. The stochastics are diverging on the upside into the overbought, and the MACD diff is positive and diverging, confirming the trend on the upside. We expect futures to edge higher in the near term towards the test of 200 DMA at 7256 once again today. On the downside, if futures fail into 6720 once again, then we could see prices break back below the 10 DMA before the long-term support of 6000. We expect futures to remain firm in the near term; this could provide a strong signal on the upside.
Ldn 2nd Month Cocoa Futures
Ldn cocoa strengthened yesterday as protracted buying pressure triggered a close on the front foot at 5221. The stochastics are rising, with %K/%D now diverging on the upside in the overbought. The MACD diff is positive and diverging. A longer bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the 5359 resistance. This would confirm the trend for rising prices, up to 5500. On the downside, a breach of support at 40 DMA would strengthen the bearish momentum. This could also trigger losses towards the 10 DMA at 4742. Indicators point to higher prices. However, futures need to break above 5350 to confirm the outlook.
