NY 2nd Month Sugar Futures
Prices weakened on Friday as moderate selling pressure triggered a close below the 40 and 10 DMA support levels at 24.14. The stochastics are falling, and the MACD is positive and converging, suggesting waning buying pressure. Dips in the market have been well-bid in the last couple of sessions, but in order to confirm the outlook for lower prices, futures need to break below the robust support of 24.09 before 100 DMA at 23.80. Conversely, a break above the 10 DMA at the 24.54 resistance line could set the scene for a test of 25.00. With another protracted candle, we could see a potential change in trend; however, the prices need to break below current support to confirm the outlook for more bearish momentum.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened on Friday, breaking below the 10 DMA support level to close at 676.57. The stochastics continue to fall as they edge out of the overbought. The MACD diff is positive and converging, pointing to growing selling pressure. A break below the 40 DMA at 667.93 would confirm the outlook for lower prices and the three black crows formation, a clear bearish sentiment. This may pave the way for lower prices to 661.10, with the tertiary level at 100 DMA at 656.82. Conversely, the reaffirmation of support above 40 and 10 DMA at 667.93 and 676.57, respectively, would suggest higher prices and a close above 700. Friday's candle body suggests appetite for lower prices, and the indicators are pointing to a further fall in prices in the near term.
NY 2nd Month Coffee Futures
NY coffee futures buckled on Friday as protracted selling pressure triggered a close on the back foot at 158.20. The stochastics are falling, and %K/%D has given a sell signal; the RSI is also falling. The MACD diff is positive and converging, confirming growing selling pressure; this could set the scene for lower prices towards the 155.80 level. A break below this level would confirm the outlook of lower prices. On the upside, a break above the 164.05 resistance level and reaffirmation of support above 40 DMA at 167.70 could strengthen the trend on the upside in the long run. Futures need to take out the DMAs in order to confirm the outlook of higher prices. The 10 DMA continues to support prices from the downside, but we expect futures to soften back to 155 in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures weakened on Friday as futures failed into the resistance at 2518 once again and closed at 2437. The stochastics continue to decline and are edging closer to the oversold. The MACD diff is negative and diverging. A break below the 100 DMA resistance at 2447 would confirm the bearish engulfing candle and may pave the way for lower prices to 2400. Conversely, the reaffirmation of support above this level would suggest higher prices and a close above 2518, setting the scene for higher prices towards 10 and 40 DMAs. Friday's candle body suggests an appetite for lower prices and could trigger a break of support today. The indicators are pointing to a further decline in prices in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower on Friday after prices failed to break above the previous day's high of 3588, prompting a close at 3521. The stochastics are falling, with %K/%D converging on the downside in the overbought, and the MACD diff is positive and converging. To confirm the bearish indicators and rejection of prices above 3600, futures need to take out the trend support at 3515 and then target 10 DMA at 3443. On the upside, futures need to close above 3588 and then test the 3600 level in order to confirm the outlook for higher prices. We expect futures to weaken in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged above the previous day's closing price, but the bullish momentum was not strong enough, and futures closed lower on the day at 2685. Still, the robust resistance of 2678 was breached, and prices reached new highs. The stochastics continue to rise yet are seen converging, and the MACD diff is positive and diverging. The upside momentum for both indicators is seen slowing. The rejection of prices at 2700 has formed a candle with a narrow body but a long wick on the upside, suggesting an appetite for higher prices; however, lacking the conviction to break above the near-term resistance. If prices were to break above this level, this could trigger a test of 2715. To confirm the shooting star formation, futures need to take out 2678 and then robust support at 2600. A break below this level would confirm the outlook for lower prices.
