NY 2nd Month Sugar Futures
NY sugar strengthened on Friday as moderate buying pressure triggered a close on the front foot at 25.45. The stochastics are rising out of the oversold, with %K/%D just converging on the upside, the strong buy signal. The MACD diff is negative and converging. A bullish candle with a longer lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the 25.46 resistance. This would confirm the trend for rising prices, up to 40 DMA at 25.64. On the downside, a breach of support at 100 DMA at 25.00 would strengthen the bearish momentum. This could also trigger losses towards the 24.35. Indicators are showing a change of the trend on the upside, and if futures break above the shorter-term moving average resistance levels, we would expect to gain positive momentum in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground on Friday as buying pressure triggered a close on the front foot above 10 DMA at 706.40. The stochastics are rising, with the %K/%D sending a buy signal, as the MACD diff is negative and converging on the upside. This suggests we could see a continuation of the upside trend in the near term, with prices edging towards 710 before testing the 715 level, the recent week’s highs. On the downside, the candle found support at the 100 DMA level at 686.37, and if the prices break through this level, we could see prices retreat back through 675. The three-white soldier formation is a bullish signal, but futures need to find support above 10 DMA completely in order to solidify the outlook on the upside.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve on Friday as intraday trading caused the market to close at 147.20. The stochastics are rising, with %K/%D converging on the upside – now edging out of the oversold, and the MACD diff is negative and converging, suggesting higher prices in the near term. The RSI is also rising; to confirm the outlook of higher prices, futures need to close back above 15.79 and then target 16.00. On the downside, the rejection of prices around 15.80 could trigger losses back towards 15.50. A break below this level and a test of 10 DMA at 15.34 would confirm the trend on the downside. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance to confirm the longer-term outlook.
Ldn 2nd Month Coffee Futures
Ldn coffee softened on Friday, as protracted selling pressure triggered a breakthrough of 2200 and closed on the back foot at 2280. The stochastics are falling, with %K/%D diverging on the downside further into oversold, a continuation of downside momentum. The MACD diff is negative and diverging, suggesting increasing downside pressures; this could set the scene for lower prices towards the trend support level at 2210. A break below this would confirm the trend for falling prices, down to the 2200. On the upside, resistance at 2342 has proven to be strong before, and an appetite above that level would strengthen the bullish momentum. This could also trigger gains towards 10 DMA at 2348. A bearish candle body along with a longer lower wick point to an increased appetite on the downside; however, the futures need to break completely below 2250 to confirm the outlook.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading caused the market to close at 3461. The stochastics are rising out of the oversold after converging on the upside, and the MACD diff is negative and about to cross on the upside, suggesting higher prices in the near term. To confirm the outlook of higher prices, futures need to close back above 3483 and then target 40 DMA at 3535. The 10 DMA at 3461 is closing in and resisting prices on the upside. Alternatively, a break below the robust support level at 3400 would confirm the trend on the downside. Two long-bodied candles in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance/support to confirm the longer-term outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday as intraday trading saw prices close at 2954. The %K/%D is positive and diverging on the upside. The MACD diff is negative and converging on the upside, suggesting waning selling pressure. The indicators point to slowing downside momentum, and to confirm the outlook for higher prices, futures need to take out the 10 DMA at 2939 completely. A break above this level towards 3000 would confirm the strong bullish momentum. Conversely, appetite for prices below the 2900 could trigger a test of support of 40 DMA at 2899. A positive candle after short bearish candles signals market uncertainty, and narrowing support and resistance DMAs are creating a tight trading range, a break out of which would set the scene for strong momentum. We anticipate prices on the front foot in the near term; however, futures need to break above 10 DMA to confirm the momentum.
