NY 2nd Month Sugar Futures
NY sugar futures opened lower but managed to close higher day-on-day at 20.06. The stochastics are falling, but %K is seen tailing off on the upside, which could suggest a change of momentum in the near term. The MACD diff is negative and converging, confirming the outlook. On the upside, futures need to break above the robust resistance levels of 10 DMA at 20.24 and 20.76 to trigger the momentum to the 40 DMA level. Conversely, appetite for prices below 19.50 could trigger a test of support of 19.00. Candles have been trading range-bound in the last couple of sessions, so to confirm the indicators’ outlook on the upside, the futures have to break above the DMA levels first.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened lower day-on-day, but support at 550 helped the prices to close higher at 556.80. The stochastics are seen converging back on the upside; the %K/%D is about to send a buy signal. The MACD diff is negative and converging. This suggests that we could see further upside momentum; futures need to break above the robust resistance level that is now at the trend support of 558 before targeting 574. On the downside, the 100 DMA is providing robust support at 548.95. If these levels are broken, this could set the scene for lower prices to 540. Volume has increased in the last couple of days. With the indicators suggesting a strong buy signal in the near term, we expect the futures to gain momentum on the upside in the near term.
NY 2nd Month Coffee Futures
NY coffee futures rallied yesterday as protracted buying pressure triggered a close on the front foot at the longer-term regression line at 279.40. The %K/%D is diverging on the upside, but the %K is seen flattening out in the overbought, suggesting waning buying pressures. The MACD diff is positive and diverging. On the downside, a break back below the trend support level of 270 could trigger losses back towards 260, which would help confirm the outlook for lower prices in the longer term. On the upside, a complete break above 280 could trigger gains towards new highs. The market rally has been strong in recent sessions, with three white soldiers’ formation confirming the strength of bull sentiment. The positive indicators confirm that we could see prices strengthen further in the near term, although the upside appetite is likely to slow.
Ldn 2nd Month Coffee Futures
Ldn coffee futures gained ground yesterday as buying pressure triggered a close on the front foot above the 40 DMA at 4777. The stochastics are rising with the %K/%D diverging towards the overbought area, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards 5000, but the market needs to take out immediate resistance of 4850. On the downside, the candle found support at 100 DMA at 4595, and if the prices break through this level, we could see prices retreat back through the 4500 before the 10 DMA at 4456. The three white soldier formation is a bullish signal, but futures need to take out 4850 in order to confirm the outlook on the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures rallied yesterday as protracted buying pressure triggered a close on the front foot above 8000 at 8506. The %K/%D has converged on the upside in the overbought. The MACD diff is positive and diverging, confirming rising buying pressures. On the downside, a break below the key support level of 8000 could trigger losses back towards the 100 DMA at 7537; a break below 7336 would confirm the outlook of lower prices in the medium term. On the upside, a close above the 38.2% fib level at 8773 resistance could trigger gains through 9000 towards 1000. A long candle body points to more certainty in the bullish momentum, and a close above 8000 confirmed the outlook for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa prices gained ground yesterday, testing resistance at 100 DMA and triggering a close at 6056. The stochastics favour the upside, with the %K/%D stochastic being overbought. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and yesterday’s candle suggests we could see prices challenge the 100 DMA at 6002 once again in the near term. In the medium term, futures need to hold above 6000 to suggest further strength. On the downside, a break below the 10 DMA support level at 5529 could trigger losses back to 5000. A long candle body points to a stronger appetite above the current resistance level. We anticipate prices to improve today as moderate buying pressure continues.
