NY 2nd Month Sugar Futures
NY sugar futures opened higher on Friday, but the resistance of 10 DMA caused them to close lower on the day at 20.15. The stochastics are seen falling on the downside, but the %K/%D is now showing signs of convergence, suggesting we could see waning downside momentum. The MACD diff is negative and diverging marginally, further confirming weakening appetite for lower levels. A break of the 20.00 level could trigger losses through 40 DMA at 19.88, with the tertiary level at 19.64. On the upside, a break above 10 DMA at 20.30 could set the scene for bullish momentum towards 20.71. The indicators point to a reversal of momentum on the upside; however, futures struggled to break the resistance of 10 DMA in recent sessions, and they would first need to break above this level to confirm growing upside momentum.
Ldn 2nd Month Sugar Futures
Ldn sugar futures opened above the previous day’s close on Friday, but weakness prevailed during the day to close lower at 572. The RSI is falling, and %K/%D is seen diverging on the downside. The MACD diff is negative but is weakening marginally, suggesting a lack of appetite for lower prices. To confirm the rejection of the support, prices need to take out 600. A break below this level towards the 40 DMA level at 559.24 would confirm the stronger bearish momentum. Conversely, appetite for prices above the 10 DMA level at 572 could trigger a test of 575.40; tertiary resistance stands at 580. A spinning top candle after a bearish one confirms uncertainty about higher prices, and we expect 10 DMA resistance to weigh on any upside price potential.
NY 2nd Month Coffee Futures
Prices weakened on Friday as moderate selling pressure triggered a close at 176.60. The MACD diff is negative and converging. The stochastics are rising after the %K/%D converged on the upside out of the oversold territory, a strong buy signal. The inside day yesterday suggests a continuation of Thursday’s sideways momentum, as support at 174.35 is holding firm. Volumes remain high, but there is a lack of appetite in either direction, bound by near-term resistance and support levels. To confirm the outlook on the upside, futures need to break above 180 before targeting 194.15. Alternatively, support at 174.35 needs to be broken before 100 DMA at 169.75. The indicators point to a building upside momentum, but candles need to break below the near-term resistance to confirm this.
Ldn 2nd Month Coffee Futures
Ldn coffee futures weakened on Friday, but support at 2062 caused the market to close at 2064. The stochastics continue to fall, with %K/%D declining further into the oversold territory, and the MACD diff is negative and diverging, suggesting lower prices in the near term. To suggest the outlook of lower prices, futures need to close back below 2060 and then target 2050 before 2000. However, a break above the resistance of 10 DMA at 2120 could set the scene for 2150 and then 2200. The long candle body with short upper and lower wicks suggests strong downside conviction on Friday, but with 2062 holding firm once again, we expect futures to struggle below this level in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures jumped higher on Friday, breaking above the 10 DMA resistance and closing at 2721. The stochastics are rising, with %K/%D just converging on the upside out of the oversold territory, and the MACD diff is negative and converging, sending a buy signal. The reaffirmation of support at 10 DMA at 2705 could set the scene for higher prices back to test the 2800 and 2856 – the recent highs. This would confirm the three white soldiers’ formation and the outlook for higher prices. On the downside, futures need to break below the support of 40 DMA at 2692 in order to end the recent sessions’ bullish momentum. Then, the 2600 level provides a robust support level on the downside. The market needs to gain a footing above the 10 DMA completely in the immediate term to confirm a further bullish outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa strengthened on Friday as protracted buying pressure triggered a close on the front foot at 2080. The stochastics are rising, with %K/%D diverging on the upside out of oversold. The MACD diff is negative and converging. A longer bullish candle body suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 2100, but prices struggled above the longer-term upside trend. A break above this level would confirm the trend for rising prices up to recent highs. On the downside, a breach of support at 50 DMA at 2052 would strengthen the bearish momentum. This could also trigger losses towards 2000. Indicators point to higher prices, but with prices struggling in the past above trend resistance, futures are capped on the upside.