NY 2nd Month Sugar Futures
NY sugar futures held their nerve on Friday as intraday trading saw them testing appetite at 23.20. This level held firm, and the future closed at 23.46. The stochastics are falling, with %K trading out of the overbought, and the MACD diff is positive and converging on the downside, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support of 23.00, which could set the scene for futures to take out the 10 DMA level at 22.85. On the upside, the market needs to take out resistance at 24.00 once again to then target 24.09. The 10 DMA level is providing a solid support level, and in the meantime, we expect futures to edge slightly lower to that level in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve on Friday as intraday trading saw prices close at 668.20. The RSI is falling, and %K/%D is diverging on the downside, out of the overbought, signalling further downside pressures. Likewise, the MACD diff is converging on the downside, suggesting an appetite for lower prices, but futures need to break below 650 first to trigger the momentum on the downside. A break below this level towards 10 DMA at 647.99 would confirm the growing bearish momentum. Conversely, appetite for prices back above 960.20 could set the scene for 700 and 710, respectively. A long-legged doji candle shows indecision about either direction; the length of the wicks also points to increased volatility during the day. The indicators point to a change of momentum on the downside, but futures need to close below 650 first.
NY 2nd Month Coffee Futures
NY coffee futures opened higher on Friday, but the resistance of 198.10 caused futures to close lower on the day at 191.50. The stochastics are seen converging on the downside, with the %K/%D now flattening out in the overbought, and the MACD diff is positive and diverging, but the upside momentum is slowing. A break of the 10 DMA level at 182.32 could trigger losses through 40 DMA at 180.44, with the tertiary level at 171.85. On the upside, a break above 198.10 could set the scene for bullish momentum towards 200. Friday’s candle suggests that prices rejected gains above 198.10, and with the indicators converging on the downside, we expect to see some softening in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures softened on Friday after finding resistance at 2400. The market closed at 2344. The stochastics are converging on the downside in the overbought, while the MACD diff is positive and converging slowly, suggesting we could see marginally lower prices in the near term. On the upside, a break above 2400 would bring into play the 2415 level. On the downside, futures need to break below 2300 in order to confirm downside momentum. The appetite below that level could trigger losses towards 10 DMA at 2266; this could strengthen the trend in the long run on the downside. A candle with a longer lower wick after a similar bullish candle highlights the uncertainty for futures to move in either direction.
NY 2nd Month Cocoa Futures
NY cocoa futures softened on Friday as futures struggled above 2930. The futures closed at 2897. The stochastics are falling, with %K/%D converging on the downside. Likewise, the MACD diff is about to converge on the downside, suggesting we could see prices moderate. To suggest the outlook for higher prices, futures need to break above the resistance at 2930, which could set the scene for futures to take out 2958, Friday’s high. On the downside, the market needs to take out support at 10 DMA at 2880 and then support at 2856. The 10 DMA level continues to support the futures on the downside; however, seen flattening, and with a longer upper wick on Friday, we could see the bears’ strength grow in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures gained ground on Friday as buying pressure triggered a close on the front foot above 2200 at 2209. The stochastics remain overbought as they fluctuate between gains and losses, as the MACD diff is positive and diverging, suggesting that prices will remain elevated in the near term. If the resistance at 2200 is fully broken, this could trigger a gain to 2245, the recent high. On the downside, if upside momentum does not hold firm, we could see prices fall through to 2150 to 50 DMA at 2107. A longer upper wick on Friday points to the appetite for higher prices; however, futures need to cross completely above this level to suggest further momentum on the upside.