NY 2nd Month Sugar Futures
NY sugar has been bid in recent sessions causing prices to close at 17.80. The stochastics have given buy signal and are pushing higher towards overbought, but futures have failed to break above the 40DMA at 17.82. The MACD diff is positive once again and the two strong candles suggest higher prices towards 18. However, the long term trend remains on the downside as rallies into the 40 DMA have repeatedly failed. This could set the scene for a retracement back towards 17, with the recent low at 16.75. To confirm the improving sentiment, prices need to break above 18 in higher volumes, we would expect any rally to find strong resistance between 18.17-18.44.
Ldn 2nd Month Sugar Futures
Friday's recovery back above 505.40 could set the scene for a close at 509.40. The stochastics rising with the gap between them rising outlining momentum on the upside towards overbought. The MACD diff is positive and diverging suggesting higher prices in the near term towards 512.90. Thursday's full candle and Friday's recovery below 505 suggest buying pressure but volumes are low. Trading volumes need to confirm the move higher, we could see prices test 512.90 in the near term before the 100 DMA. Lack of appetite for prices around 512.90 may set the scene for a correction back towards 500.
NY 2nd Month Coffee Futures
Prices consolidated on Friday after prices tested support and resistance, and the market closed 208.25. The stochastics are oversold and falling, suggesting weak sentiment. The MACD diff is falling and negative as well, this could trigger further losses back to 200, which would confirm the bearish engulfing candle on Thursday. We have seen a band of support at 200-206 and this may prompt prices to push back towards 221.33. In the longer turn, we have seen coffee prices trade a 200-240 range, and the bulls need to see a close back above 212.60 and then 221 in order to indicate improving sentiment.
Ldn 2nd Month Coffee Futures
London prices gained ground on Friday but intraday trading failed to break above resistance at 2159. The volumes are rising, but the 10DMA is falling and this will act as resistance in the near term. The MACD diff is negative as well and this confirm the recent trend and prompt a test of support 2116. The descending triangle is still intact, but a break below 2116 would trigger losses back through 2100. On the upside, futures need to break above the 10DMA and then 2200. If the band of support between 2117-2160 could trigger gains towards 2200.
NY 2nd Month Cocoa Futures
NY cocoa prices failed to push higher on Friday, after finding support from the long term resistance. The close at 2381 could trigger gains towards 2420 and the market could break above this level after reaffirming support at the now trend support. The stochastics are rising and the MACD diff is positive and continues to diverge, which could trigger gains through 2420. Resistance at 2420 has been strong in recent months and this could trigger losses back through 2300, if trend support holds firm this could trigger robust gains.
Ldn 2nd Month Cocoa Futures
Ldn cocoa prices surged higher on Friday as appetite for higher prices caused at close at 1939. The stochastics are rising further into overbought, and this shows positive sentiment, as the MACD diff is positive and diverges. Buying pressure is strong shown by the full candles. A breach and close above 1950 would confirm this sentiment. On the downside, rejection of prices above 1950 could trigger losses back to 1930 before 1900. We expect prices to remain on the front foot in today's session.