NY 2nd Month Sugar Futures
NY sugar futures failed above the previous day’s highs yesterday as moderate selling pressure caused futures to close at 18.06. The stochastics are sending a strong sell signal, with %K/%D converging on the downside out of the overbought, and the MACD diff is positive and converging, suggesting lower prices in the near term. However, the reaffirmation of support yesterday at the 40 DMA has formed a shooting star candle, suggesting that while upside momentum is waning, the nearby support remains robust. If prices were to break below this robust level, this could trigger a test of the 10 DMA at 17.92 and 17.50. On the upside, futures need to take out 18.50 and then robust resistance at 19.00. The indicators suggest further weakness, but to confirm this, the futures need to break below the 40 DMA first.
Ldn 2nd Month Sugar Futures
Prices weakened yesterday as moderate selling pressure triggered a close at 508.10. The MACD diff is positive and converging, and the stochastics are converging in the overbought. The recent weeks’ gains have been well bid, and in order to confirm the change of trend, prices need to break below the 40 and 10 DMA levels at 504.38 and 503.44, respectively. This would also confirm the shooting star formation. Conversely, a break above the 512.60 level could target 519.00. In the meantime, we expect moderate softness in the near term.
NY 2nd Month Coffee Futures
NY coffee continued to break new highs, as protracted buying pressure triggered a close on the front foot at 397.10 yesterday. The stochastics are converging on the downside in the overbought, with %K/%D sending a strong sell signal. The MACD diff is positive and converging. A thin, bullish candle with a longer upper wick suggests that buying pressures might be waning around the 400 resistance level, which is a psychologically robust resistance. A break above it could set the scene for new highs. On the downside, a breach of support of trend support would help confirm the bearish momentum. This could also trigger losses towards 375 and the 10 DMA at 367.95. Both the indicators and the candle shape suggest that the resistance at 400 could be robust, and failure to break above this level could cause a moderate pullback in prices.
Ldn 2nd Month Coffee Futures
Ldn coffee futures opened higher yesterday. However, a lack of strong bullish momentum caused the market to close lower on the day at 5646. The stochastics are falling out of the overbought, and the MACD diff is positive and converging, highlighting growing downside movement. To confirm the bearish indicators, futures need to break below the support at 10 DMA at 5587 before targeting 5500. A break below this level would confirm the downward trend. On the upside, to confirm the outlook of higher prices, futures need to close back above regression resistance at 5750 and then target a recent high of 5800. A narrow-bodied candle points to market uncertainty. As the 10 DMA support remains robust, we could see prices edge up in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures weakened yesterday as protracted selling pressure triggered a close below 10500 at 10127. The stochastics are continuing to decline, with the %K/%D falling into the oversold territory. The MACD is negative and diverging, and the long candle body supports market decisiveness. The next robust support level stands at 10000, with a subsequent level at 9542. Conversely, a break back above the 40 DMA at 10814 could set the scene for a test of the 10 DMA at 10969. We expect prices to struggle below the 10000 support level in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa weakened yesterday as protracted selling pressure triggered a close on the back foot at 8139. The stochastics are falling, with %K/%D diverging on the downside, as the MACD diff is negative and diverging. A full bearish candle with a longer lower wick suggests that support at 8000 is robust. However, a break below this level could set the scene for lower prices towards the 7500 support level. This would confirm the trend for falling prices, down to 7348. On the upside, resistance at 40 DMA at 8683 has proven to be strong, and a break above that level would strengthen the bullish momentum. This could also trigger gains towards the 10 DMA. Narrowing support and resistance levels are creating a narrow trading range, but we believe that the prices will edge marginally lower, retesting the 8000 support today.
