NY 2nd Month Sugar Futures
NY sugar futures weakened on Friday as futures failed into the resistance of moving averages and closed at 23.88. The stochastics continue to fall, edging close to the oversold. The MACD diff just converged on the downside, a strong sell signal. A complete break below 100 DMA at 23.99 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 23.50, with the tertiary level at the longer-term trendline. Conversely, the reaffirmation of support back above 100 DMA would suggest higher prices and a close above 40 DMA at 24.32, setting the scene for higher prices towards the 10 DMA at 24.46. Friday’s candle body testing the longer-term moving average suggests an appetite for lower prices, and the indicators are pointing to a further fall in prices in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened on Friday as futures failed into the resistance at 690 once again and closed at 680.81. The stochastics continue to decline. The MACD diff is positive and converging, suggesting growing selling pressures. A break below the longer-term moving averages would confirm the triple-top formation. This may pave the way for lower prices to 661.10, with the tertiary level at 650. Conversely, the reaffirmation of support above 40 DMA at 669.10 would suggest higher prices and a close above 10 DMA at 675.90, setting the scene for higher prices towards 700. Friday’s candle body suggests an appetite for lower prices and could trigger a test of moving average support today once again. The indicators are pointing to a further decline in prices in the near term.Â
NY 2nd Month Coffee Futures
NY coffee futures weakened on Friday as futures confirmed the resistance at 164.05 once again and closed below the 10 DMA at 160.95. The stochastics began to fall as they edged out of overbought. The MACD diff is positive and converging, pointing to growing selling pressure. A break below 160 would confirm the outlook for lower prices and create the three black crows formation, a clear bearish sentiment. This may pave the way for lower prices to 155.80. Conversely, the reaffirmation of support above 10 and 40 DMA at 162.88 and 165.73, respectively, would suggest higher prices and a close above 170. The indicators are pointing to a further fall in prices and expect marginal declines in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower on Friday after prices failed above 2518 once again, prompting a close at 2488. The stochastics are falling, with %K/%D edging out of the overbought, and the MACD diff is negative and diverging, confirming the outlook for lower prices. To confirm the bearish indicators, futures need to break below the support at 100 DMA of 2464 and then target 2400. On the upside, the 10 DMA resistance needs to be broken above for futures to test the 2550 level and then 40 DMA at 2596 in order to confirm the outlook of higher prices. Still, we expect prices to weaken in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday after prices struggled below 3483, the most recent support level. Still, the market closed below the 10 DMA at 3498. The stochastics are falling, with %K/%D just diverging on the downside, with %K now out of the oversold, and the MACD diff just converging on the downside, a strong sell signal. On the downside, futures need to break below the recent support of 3483 in order to confirm the continuation of the bearish trend. Alternatively, the reaffirmation of support above 10 DMA at 3509 could set the scene for higher prices back to test the 3550 level once again, confirming an inverse hammer formation.Â
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday after testing the support level of 2678. The market closed above it at 2680. The stochastics are oversold, but %K/%D is now diverging on the downside, whereas the MACD diff is positive and converging. The reaffirmation of support at 2650 could set the scene for higher prices back to test 2700, confirming an inverse hammer formation. This could trigger further gains to 2731. On the downside, futures need to break below the near-term trend support, now at 2665, in order to confirm the bearish trend. Indeed, yesterday’s support level has been robust, and a break below would suggest a strong conviction on the downside to 2600 before 2558. The longer upper wick with a narrow body confirms the support is still intact.
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