NY 2nd Month Sugar Futures
NY sugar futures weakened on Friday as futures failed into the resistance at 10 DMA once again and closed at 26.48. The stochastics continue to fall as they edge closer to the oversold. The MACD diff is negative and diverging, pointing to a growing selling pressure. A break below 26.00 would confirm the outlook for lower prices. This may pave the way for lower prices to 40 DMA at 25.66, with the tertiary level at 100 DMA at 25.05. Conversely, the reaffirmation of support above the near-term support would suggest higher prices and a close above 10 DMA at 26.94, setting the scene for higher prices towards 27.25. Friday’s candle suggests a growing appetite for lower prices, and the indicators are pointing to a further weakness in prices in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures weakened on Friday as futures failed into the resistance at 10 DMA at 718.43 once again and closed at 703.80. The stochastics continue to decline and have entered the oversold. The MACD diff is negative and diverging. A break below the 40 DMA support at 702.14 would confirm a bearish engulfing candle pattern. This may pave the way for lower prices to 700, with the tertiary level at 100 DMA at 686.63. Conversely, the reaffirmation of support above 40 DMA would suggest higher prices and a close above the 10 DMA, setting the scene for higher prices towards 736. Friday’s candle body being larger than Thursday’s suggests a growing 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 Coffee Futures
NY coffee futures softened on Friday and tested the robust support level at 147.20. The market struggled below this level and settled there. The stochastics are falling, with %K/%D just diverging on the downside into the oversold, and the MACD diff is negative and diverging. The appetite back above 150 could set the scene for higher prices to test shorter-term moving averages at 153, confirming the hammer formation. On the downside, futures need to break below the support of 147.20 in order to confirm the bearish trend. Indeed, this support level has been robust in the last couple of months, and a break below this level would suggest a strong conviction on the downside.
Ldn 2nd Month Coffee Futures
Ldn coffee futures opened higher day-on-day but struggled to break above the resistance at 2370 and closed at 2369. The stochastics are diverging on the downside, and the %K/%D is oversold. Likewise, the MACD diff is negative and diverging marginally. Prices then need to take out the 2342 level to confirm the bearish momentum to 2300. Conversely, appetite for prices above 2370 could trigger a test of resistance of 2400. A dragonfly doji candle shows rejection of higher prices above this level and could point to a start of a bearish sentiment in the near term. To confirm this, the support at 2340 has be broken below first.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading caused the market to close at 3428. The stochastics are falling; however, the downside momentum is slowing; the %K/%D is now seen converging in the oversold territory. The MACD diff is negative and diverging, but downside pressures are subsiding. To confirm the outlook of higher prices, futures need to close back above 3483 and then target 3530. On the downside, the rejection of prices around 3415 could trigger losses back towards 3400. Two narrow-bodied candles in the last couple of sessions point to market uncertainty but with the 10 DMA about to break below the 40 DMA level, a death cross, the upside potential is capped in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday as intraday trading saw prices close at 2915. The %K/%D is oversold but seen converging on the upside. The MACD diff is negative but flat, suggesting waning selling pressure. The indicators point to a slowdown in recent weakness, and to confirm the outlook for higher prices, futures need to take out the 10 DMA at 2943. A break above this level towards 3000 would confirm the strong bullish momentum. Conversely, appetite for prices below 2900 could trigger a test of support of 40 DMA at 2862. Futures seem stuck between the robust support at 2900 and the 10 DMA resistance. With indicators pointing to waning selling pressures, we expect futures to break above the 10 DMA resistance in the near term.
