NY 2nd Month Sugar Futures
NY sugar futures continued to weaken, softening to the support of 18.00. The market closed lower at 18.05. The stochastics are falling, with %K/%D diverging on the downside in the oversold, and the MACD diff is negative and diverging. The reaffirmation of support at 18.00 could set the scene for higher prices back to test the 19.00 level. On the downside, futures need to break below the current support and then breach the August support of 17.89 in order to confirm the bearish trend. Indeed, this support level is robust, suggesting that appetite for prices below this level could signal further losses. However, the narrow candle body suggests a lack of immediate appetite below this level. The market needs to break below the near-term support in the immediate term to confirm the outlook.
Ldn 2nd Month Sugar Futures
Ldn sugar futures failed above 512.60 yesterday, prompting prices to close below it at 509.80. The stochastics are falling, with %K/%D diverging on the downside in the oversold; the MACD diff is negative and diverging, suggesting lower prices in the near term. The rejection of prices above 505 has formed a candle with a short body but a longer lower wick, confirming a lack of appetite to break significantly lower. If prices were to break back above 515, this could trigger a test of 520 and then 10 DMA at 532.60. Alternatively, to confirm another bearish candle, futures need to take out 505 and then 500. A break below this level would confirm the outlook for lower prices.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve yesterday as moderate selling pressures struggled to break back into the trend channel once again. The trend resistance held firm, and futures closed at 318.30. The stochastics are falling, with %K/%D seen diverging on the downside. The MACD diff is negative and diverging. To confirm the outlook for lower prices, futures need to break below the support at 315, which could set the scene for futures to take out the support at 304. On the upside, the market needs to take out resistance of 10 DMA at 325.88 and then resistance at 340. The candle found support above the trend resistance, and a longer upper wick signals a growing appetite for lower prices. If the futures break below this level, we could see prices edge lower, and indicators point to a continuation of a downtrend.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower yesterday as moderate selling pressure triggered a close at 5046. The stochastics are falling, with the %K breaking below %D, creating a strong sell signal. The MACD diff is negative and diverging. A break of the 5000 level could trigger losses through the 40 DMA at 4816, with the tertiary level at 4664. On the upside, a break above the 10 DMA at 5154 could set the scene for bullish momentum. Following yesterday’s break below the 10 DMA, indicators point to a continuation of softer prices in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures failed above the previous day’s highs yesterday as moderate selling pressure caused them to close at 11413. The stochastics are falling, with %K/%D converging on the downside recently but still overbought; the MACD diff is positive and converging, which could point to rising downside pressures. The rejection of prices above 12000 prompted futures to correct; however, the 10 DMA support level now appears to be robust. A longer candle wick points to a lack of appetite below this level. If support at 10 DMA at 10920 is broken, we could see futures test 10000. On the upside, if prices were to break back above 12000, this could trigger a test of yesterday’s high at 12913, which is also a series high. A break above this level would confirm the outlook for higher prices.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures opened higher yesterday, but resistance at 9500 caused futures to close lower on the day at 9172. The stochastics have just crossed on the downside and are now falling, a strong sell signal; the MACD diff is positive and is flattening out, suggesting stalling upside pressures. On the downside, a break of 9000 could trigger losses through 10 DMA at 8641, with the tertiary levels at 8000 and 7348, respectively. On the upside, a complete break above the trend level could set the scene for bullish momentum towards 9980, an April high. The candle closing lower on the day could be a sign that futures found robust resistance at the trend level; however, this could still mean further gains over the medium term.
