NY 2nd Month Sugar Futures
NY sugar futures edged higher on Friday and managed to close above 24.10. The resistance at 40 DMA, however, held firm, and futures closed at 24.46. The indicators suggest we could see higher prices in the near term. The stochastics are rising, with %K/%D edged higher in the overbought territory, and the MACD diff is positive and diverging on the upside, suggesting further upside pressures before a change of trend. The RSI is rising, but the momentum is slowing, and we expect futures to edge higher in the near term towards 40 DMA at 24.47 once again today. Superseding this level, resistance stands at 24.50. On the downside, if futures fail into 10 DMA at 23.81, then we could see futures break back below 100 DMA at 23.39 before the 23.00 level. The narrowing DMA support and resistance levels suggest that a break below/above these levels could strengthen the momentum. We expect futures to firm above 24.00 today.
Ldn 2nd Month Sugar Futures
Ldn sugar futures rallied on Friday as protracted buying pressure triggered a close on the front foot at 685.70. The RSI is falling, while %K/%D are converging on the downside. The MACD diff is positive and converging, suggesting that the recent upside momentum might be running out of steam. On the downside, a break back below the support level of 40 DMA at 671.20 could trigger losses back towards 661.10, a break below which would confirm the outlook of lower prices in the longer term. On the upside, a break above 700 could trigger gains through the 711.60 resistance towards the 718.20 – April high. The market rally has been strong, with three white soldiers’ formation confirming the strength of bull sentiment. However, the indicators suggest that upside appetite might be waning, and we could see prices edge lower today.
NY 2nd Month Coffee Futures
NY coffee futures edged higher on Friday as intraday trading saw prices supported above the 10 DMA. The market closed at 160.80. The RSI is rising, and %K/%D are positive and diverging. The MACD diff just converged on the upside, a strong buy signal. The indicators point to higher prices in the near term, and to confirm the confirmation of support, prices need to take out 164.05. A break above this level towards 170 would confirm the strong bullish momentum. Conversely, appetite for prices below the 150 level could trigger a test of 155.80. Prices struggled above the 10 DMA level in recent days, and Friday’s break above this level suggests that we might see futures gain momentum on the upside in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower on Friday as prices closed at 2540. The indicators are now favouring the upside, as %K/%D converged on the upside, confirming growing buying pressures. The MACD is negative and converging. A break below 2500 would bring into play the 2489 support level. Prices have been relatively well supported above this level, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above 10 DMA at 2545 and then target the 40 DMA at 2614 in the near term. Futures traced the 10 DMA line in recent days, and a break above it would confirm a change in momentum on the upside.
NY 2nd Month Cocoa Futures
NY cocoa futures jumped higher on Friday as trading saw prices close just below the trendline at 3352. The stochastics are seen converging on the upside once again, and the MACD diff is negative and converging. A break above the trendline at 3370 could set the scene for bullish momentum towards 3414, but futures struggled above the near-term resistance in recent days. Alternatively, a break of 3200 could trigger losses through 40 DMA at 3179, with the tertiary level at 3100. The candle with a longer upper wick around robust resistance could be a sign of this level holding firm once again; however, the indicators point to strong upside momentum in the near term. If resistance at 3370 is broken, this could set the case for strong upside momentum.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher on Friday as support at 50 DMA held firm once again. The futures, however, were capped at the DMA resistance level at 2500, causing the prices to close at 2498. The stochastics continue to fall; however, the downside momentum is seen slowing. The %K/%D is converging on the upside once again, and the RSI is now rising. This could cause futures to test the 2600 level once again, but before this, the near-term resistance at 2500 must be broken first. On the downside, 50 DMA at 2419 stands firm, and if the futures gain enough conviction to break below this level, this could trigger a test of 2400. The indicators indicate a change of momentum in the near term, but the inside candle formation on Friday suggests that futures will struggle to break higher in the near term.