NY 2nd Month Sugar Futures
NY sugar futures failed above 27.25 once again on Friday as intraday trading caused futures to close at 27.16. The stochastics are falling out of the overbought, seen by converging on the downside, and the MACD diff is positive and converging, suggesting that the upside momentum might have reached its peak. The rejection of prices at 27.25 has formed a candle with a narrow body but a long wick on the upside, suggesting a lack of conviction to break above the near-term resistance. If prices were to break above this level, this could trigger a test of 28.00. To confirm the shooting start formation, futures need to take out the 10 DMA at 26.88 and then robust support at 26.00. A break below this level would confirm the indicators’ outlook for lower prices.
Ldn 2nd Month Sugar Futures
Ldn sugar futures attempted to break the 736 resistance once again on Friday, but the bullish momentum was not strong enough, and futures closed at 730.30. The stochastics are falling, converging on the downside, as %K is seen tailing off out of the overbought, whereas the MACD diff is positive and converging, suggesting a strong sell signal. The rejection of prices at 736 has formed a candle with a narrow body but a long wick on the upside, suggesting markets testing and rejecting prices above the near-term resistance. If prices were to break above this level, this could trigger a test of 750, the historic high. To confirm the shooting star formation, futures need to take out the 10 DMA at 724.31 and then robust support at 700. A break below this level would confirm the outlook for lower prices.
NY 2nd Month Coffee Futures
NY coffee futures surged higher on Friday, breaching the robust resistance of 155.80, as protracted buying pressure caused prices to close at 159.15. The stochastics are rising and are about to enter the overbought area, as %K/%D converged on the upside and are now rising, suggesting even further buying pressure. The MACD diff is positive and diverging, outlining a strong bullish candle. This suggests that we could see a change in trend in the near term on the upside. We expect futures to remain supported above the previous resistance of 10 DMA at 152.76. Another day of strong days could see futures test the resistance of 160, the robust level on the upside. On the downside, if futures fail into the 10 DMA once again, then we could see futures test 150 before 147.20. We expect futures to strengthen in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures jumped higher on Friday as protracted buying pressure triggered a close on the front foot at 2556. The %K/%D are diverging on the upside. The MACD diff is positive and diverging. On the downside, a break back below the short-term moving average support levels 2475 and 2460, respectively, could trigger losses back towards 2500. On the upside, a break above the 100 DMA of 2530 completely could trigger gains through towards 2600, confirming a strong trend on the upside. The market rally has been strong, with three white soldiers' formation confirming the strength of bull sentiment. We could see prices trend even higher today, but support at 10 and 40 DMAs needs to hold firm for this to be the case.
NY 2nd Month Cocoa Futures
NY cocoa edged higher on Friday as intraday trading caused futures to test appetite at 3756 and close at that level. Stochastics are rising, and %K/%D continue to diverge on the upside in the overbought territory, confirming a continuation of the trend in the near term. The MACD diff is positive and diverging, suggesting continued buying pressure. To maintain positive momentum, prices need to close above 3770 and then target 3800. On the downside, the rejection of prices above these levels could trigger losses back to 3678 and the 10 DMA at 3669, respectively. Buying pressure remains weak but continuous, and the indicators point to a continuation of that trend.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures struggled above 3110 on Friday, jumping below the trend support and closing at 3060. The stochastics are falling, with %K/%D seen converging on the downside in the overbought. The MACD is positive and converging, pointing to waning buying pressures. The rejection of higher prices may prompt a break back towards support at 10 DMA at 3021; a subsequent breach of this level could trigger losses towards 3000. On the upside, a break back above the trendline may prompt futures to test 3110. A subsequent breach of this level would prompt prices to regain upside momentum in the near term. A jump lower on Friday suggests growing selling pressures; however, futures need to breach the 10 DMA support level to confirm the end of the longer-term trend on the upside.
