NY 2nd Month Sugar Futures
NY sugar futures edged lower on Friday after futures tested the 21.00 level to close at 21.26. The stochastics are falling further into the oversold after converging on the downside once again, and the MACD diff is negative and converging, struggling to highlight the outlook. To suggest the change of trend and a confirmation of support at 20.50, futures need to target the 10 DMA level at 21.90 before 22.00. On the downside, futures need to close below 20.50 in order to confirm the outlook of lower prices towards 20.00. Candles with growing upper and lower wicks point to waning downside pressure, and we might see a change of trend in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures held their nerve on Friday as intraday trading saw futures test appetite at the 76.4% fib at 609.93. This level held firm, and the future closed at 609.60. The stochastics are falling, with %K/%D converging on the downside in the oversold, and the MACD diff is converging on the upside, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above the 10 DMA resistance at 624.37, which could set the scene for futures to take out the 650 level. On the downside, the market took out the support at 600 today, which could set the scene for 580.70, which is a March low. The 10 DMA level is providing a solid resistance level, and with futures breaking below the robust 600 level, we expect further downside in the near term.
NY 2nd Month Coffee Futures
NY sugar futures softened marginally on Friday as moderate selling pressure saw futures struggle above 192.42. The futures closed at 189.30. The stochastics are falling, with %K/%D converging on the downside near the overbought. Likewise, the MACD diff is positive and converging, confirming waning buying pressures. To confirm the change of momentum, futures need to break below the 190 level, which could set the scene for futures to take out the 10 DMA level at 183.10. On the upside, the market needs to take out resistance at 192.42 completely before 195. A smaller bearish candle body after a robust upside trend points to growing uncertainty about further gains, but futures must first break the 10 DMA support to confirm the change of trend.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged higher on Friday, breaking above resistance at 2800 and closing at 2825. The stochastics are trading the overbought territory but are seen flattening out. Likewise, the MACD diff is positive and flat, outlining waning buying pressures. On the upside, futures need to break completely above 2830 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the level at 2850; this could strengthen the trend on the upside in the long run. A break back below the current support of 2800 would bring into play the 10 DMA level at 2670 before 2610. We see prices remain elevated in the near term, although gains are likely to be marginal as buying pressures wane.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as moderate selling pressure prompted a close right below the robust support of 4200 at 4198. The stochastics are neutral and fluctuate between gains and losses, and the MACD diff is negative and converging marginally. This suggests that the markets are not yet convinced to push prices completely below 4200, with 10 DMA providing robust support at 4199. On the upside, futures need to close above 4250 and then target the recent highs of 4294. On the downside, the break below the current support level could set the scene towards the 4100 level. However, the market struggled below the level in recent sessions, and a break below is needed to confirm the bearish outlook in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at 3400 once again. This level held firm, and futures closed at 3420, capped by the 40 DMA level. The stochastics are falling, with %K/%D edging into the oversold, and the MACD diff is negative and diverging, signalling growing selling pressures. To confirm the outlook for lower prices, futures need to break below the support at 3400, which could set the scene for futures to take out the trend support level. On the upside, the market needs to take out resistance of 40 DMA before 10 DMA at 3475. We expect futures to remain supported above 3400 in the meantime.
