NY 2nd Month Sugar Futures
Sugar futures failed into resistance at 20 once again and this triggered a close at 19.80. The stochastics are falling, and the MACD diff is diverging on the downside, and is now negative. The rejection of 20 on Friday has produced a inverted hammer, and there is a flag pennant being formed. A close above 20, may set the scene for higher prices towards 20.50. Conversely, the upside tail suggests lack of appetite for higher prices. A break below 19.64 would set the scene for lower prices towards 19.50 and then 19.21. We expect further consolidation in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar prices consolidated on Friday as intraday trading saw resistance at 553.20 hold firm, and the market close at 550.30. The indicators are falling towards oversold, and the MACD diff is negative. Resistance at 553.20 has held firm and this could trigger losses back to the 40 DMA at 542.90. Subsequently, a break of the 40 DMA would confirm the rejection of resistance at 553. Conversely, a close above 553 would improve upside momentum and prompt a test of 560. We expect prices to remain on the back foot in the near term.
NY 2nd Month Coffee Futures
Coffee prices were well bid on Friday, and this triggered a close at 185.75. The MACD diff is positive but lacks conviction, and the stochastics are rising towards overbought. The full candle on Friday suggests robust appetite for higher prices, continued appetite for prices today would set the scene for a test of the 50% fib at 191. Trend resistance remains intact, but a break below this level and 175 would trigger losses towards 167. Momentum is firmly on the upside, and this is expected to continue in the near term, but a reaffirmation of support at trend support would keep momentum on the upside.
Ldn 2nd Month Coffee Futures
London coffee prices broke resistance at 2082 but failed at 2100, triggering a close at 2098. Volumes were stronger suggesting more conviction in the market. The stochastics are rising, and the MACD diff is positive but lacks conviction. We could see a test of resistance at 2131, but a close above this area would confirm the ascending triangle at 2082. If resistance between 2100-2130 holds firm, futures would decline back towards the 50% fib level. Secondary support stands at 2017, but this is a long way off today. We anticipate further strength in the immediate term.
NY 2nd Month Cocoa Futures
NY cocoa prices pushed higher on Friday but failed into resistance at 2800. The market closed at 2771, and the stochastics are rising towards overbought and the MACD diff is positive and diverging. The rejection of prices at 2800 and inverted hammer, may set the scene for a correction back to 2700. On the upside, a close above 2800 may trigger gains back towards the upper trend channel.
Ldn 2nd Month Cocoa Futures
Ldn cocoa prices lost ground on Friday, and the shooting star candle suggests we could see a correction in the near term after Friday's close of 2121. The stochastics are overbought, and the MACD diff is positive suggesting upside momentum, and appetite for prices around 2100 would trigger gains towards 2160. On the downside, a breach of support at 2100 may trigger looses back to 2075.