NY 2nd Month Sugar Futures
NY sugar futures gained marginal ground on Friday but struggled above 27.30 once again to close at 27.28. The stochastics are beginning to fall, with the %K/%D edging lower out of the overbought, as the MACD diff is positive and converging on the downside, suggesting a strong sell signal in the near term. This suggests we could see growing downside momentum in the near term, with prices edging towards the 10 DMA of 27.17 before testing the 27.00 level. On the upside, the candle found support at the 10 DMA, and if the prices break higher, above the 27.30 level, we could see prices back at 27.80. The bullish candle with a narrow body and longer upper wick points to uncertainty about prices breaking above the near-term resistance; the indicators outlook confirms that.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground on Friday as moderate buying pressure triggered a test of 10 DMA once again before the close at 727. The stochastics are falling, and the MACD diff converged on the downside, suggesting an end to a positive trend. This suggests we could see lower prices in the near term towards 715 before testing the support level at 700. On the upside, the candle found resistance at 10 DMA at 728.15, and if the prices break through this level, we could see futures strengthen back to 747.10. The longer upper wick suggests a lack of appetite above 10 DMA, and if futures struggle to break above that level, we could see prices retreat 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 below 10 DMA at 155.80. The stochastics are falling, and RSI is also falling. The MACD diff is positive and converging, confirming growing selling pressure; this could set the scene for lower prices towards 150. A break below this level would confirm the outlook of lower prices and a three-black crows pattern formation. On the upside, a break above 10 DMA at 155.80 resistance level and reaffirmation of support above 160 could strengthen the trend on the upside in the long run. Futures need to take out the DMA in order to confirm the outlook of higher prices. The long candle body points to an increased appetite for lower prices, and the indicators confirm the outlook for more downside momentum in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged lower on Friday as moderate selling pressure triggered a close at 2461. The stochastics are falling; the MACD diff is positive and converging. A break of the trendline at 2460 could trigger losses through 2400, with the tertiary support at 2380. On the upside, a break above the 10 DMA at 2493 could set the scene for a test of 25188, pointing to a change of trend for more bullish momentum. Friday’s bearish spinning top formation points to market indecisiveness about the outlook for lower prices, and we need the futures to break support at the trendline to confirm the outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday after testing the support level at 40 DMA. The market closed above it at 3652. The stochastics are falling, with %K/%D just diverging on the downside in the oversold and is not showing any signs of convergence as of yet, and the MACD diff is negative and diverging, suggesting further downside momentum. On the downside, futures must first break below the robust support at 40 DMA at 3539 before targeting the trend support at 3500. Alternatively, the reaffirmation of support at these levels could set the scene for higher prices back to test 3600, confirming an inverse hammer formation.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday as moderate buying pressure prompted a close at 2962. The stochastics are falling, and the %K/%D is close to the oversold territory; however, they are showing signs of convergence, suggesting that the downside trend might be softening. The MACD diff is negative and diverging. To confirm another bullish candle, futures need to close above the trendline at 2970 and then target the 10 DMA at 3012. On the downside, the break below the current support level of 2900 could set the scene towards the 2845 level. However, the market struggled below this level in recent sessions, and a break above is needed to confirm the continuation of the bullish trend in the near term.