NY 2nd Month Sugar Futures
NY sugar futures held above 100 DMA on Friday once again but still struggled to break above the 24.00 resistance level on the day. The longer upper wick suggests a rejection of prices above 23.70, closing below at 23.62. The stochastics suggest that upside momentum is set to continue, with %K/%D diverging on the upside out of the oversold, while the MACD diff is about to converge on the upside, which would create a strong bullish signal. Volumes have been quite low, suggesting a lack of strong impetus to break out of the current range; however, if futures see support at 100 DMA at 23.18 solidify, this could build the case for upside momentum to test the 24.00 level before 24.09 and 40 DMA at 24.68. Alternatively, if current support is broken, it could trigger further losses back to recent lows of 22.60 and 22.00, respectively. We expect to see marginal upside pressures in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar held its nerve on Friday, closing above 650 at 654.10. The stochastics suggest growing upside momentum, with %K/%D strengthening, as the MACD diff just converged on the upside, a strong buy signal, underscoring the appetite for higher prices. At the same time, the 100 DMA is about to cross above the 10 DMA level, which would confirm the creation of the golden cross, confirming another strong buy signal, which could set the scene up to 661.10. If futures supersede this level, we could see further gains to the 40 DMA at 676.20. Alternatively, a break below the shorter-term DMAs at 640 could send futures down to 619. We expect to see further gains in the near term, and a complete break above 661.10 would confirm the buy signals seen across the indicators.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve on Friday, as both the support at 160 and resistance at 10 DMA held firm, prompting a close at 160.90. Indicators point to building appetite on the upside, with the %K/%D stochastics seen strengthening out of the oversold territory. The MACD diff is negative and converging, pointing to waning downside pressures. If support at 160 holds firm, this could stoke appetite for higher prices above 10 DMA at 162.02 and, subsequently, to 170. On the downside, the next robust support after 160 stands at 155.80, which also marks lows not seen since January. We expect futures to retest the 10 DMA level as appetite for further gains grows.
Ldn 2nd Month Coffee Futures
Ldn coffee futures rallied on Friday, jumping above the shorter-term moving averages to close at 2621. The indicators followed suit, now indicating strong upside pressures: the %K/%D converged on the upside, breaking out of the oversold, and the MACD diff is negative and converging. Greater volumes on the day and a bullish engulfing pattern both indicate strong upside pressures, and we expect prices to remain elevated above the 10 DMA level at 2581. This could set the scene for further bullish momentum above 2620 and back above the trendline at 2675. At the same time, Friday’s momentum struggled to break above the 40 DMA at 2610 and could cap prices slightly today. We expect today’s trading to fluctuate between the 10 and 40 DMAs.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading saw prices close at 3310. The RSI is falling, and both %K/%D and the MACD diff are about to converge on the downside, outlining the upcoming sell trend. To confirm this, the futures need to break below the robust trendline at 3305 to trigger the momentum. A break below this level towards 3200 would confirm the strong bearish momentum and a rejection of the ascending triangle formation. Conversely, appetite for prices above the 10 DMA at 3306 could trigger a retest of resistance of 3400. A gravestone doji candle shows rejection of higher prices; however, the candle also struggled to break below the robust trend support. Still, we expect downside momentum to build in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged lower on Friday, testing the trend support level and closing just below it at 2581. The stochastics suggest growing downside impetus, with the %K/%D converging out of the overbought territory, and the MACD diff is positive and converging. To confirm this, futures must first break below the trendline support at 2580 before testing the 2504 level. Alternatively, the resistance has now been formed at 2600, and if futures break back above this level, it could trigger further gains to the recent resistance at 2678. We expect futures to edge lower today.
