NY 2nd Month Sugar Futures
NY sugar futures opened higher on Friday, but resistance at 40 DMA caused futures to close lower on the day at 18.88. The stochastics are now showing signs of convergence, as the %K is falling out of the overbought territory. The MACD diff is positive and converging, suggesting growing selling pressures. A break of the 10 DMA level at 18.70 could trigger losses through 18.50, with the tertiary level at 18.00. On the upside, a break above the 40 DMA at 19.05 could set the scene for bullish momentum towards 19.50. The indicators point to a reversal of momentum to more bearish; however, futures have struggled to break support at 10 DMA in recent sessions. We expect futures to remain rangebound today.
Ldn 2nd Month Sugar Futures
Ldn sugar futures failed above the previous day’s highs on Friday as intraday trading caused it to close at 533.70. The stochastics are seen tailing off, with %K/%D seen converging in the overbought; the MACD diff is positive and converging. The rejection of prices at 40 DMA has formed a candle with a short body and a longer lower wick, suggesting that prices struggled above that level but also below the 10 DMA level. If prices were to break back above this level, this could trigger a test of 550 and then 575. To confirm another bearish candle, futures need to take out the 10 DMA and then support at 512.60. A break below this level would confirm the outlook for lower prices.
NY 2nd Month Coffee Futures
NY coffee futures buckled on Friday as protracted selling pressure triggered a close on the back foot at 224.90. The stochastics have converged on the downside, and %K/%D is giving a sell signal. The MACD diff is positive and converging, confirming growing selling pressure; this could set the scene for lower prices below 220, but futures need to break completely below the 10 DMA level at 227.61. A break below this level would confirm the outlook for lower prices down to the 40 DMA. On the upside, a break back above the 233.35 resistance level and appetite for higher prices could set the scene for 240. Two-line strike formation points to a pause in the uptrend but does not signal a complete trend reversal. We are likely to see the longer-term trend on the upside continue.
Ldn 2nd Month Coffee Futures
Ldn coffee futures buckled on Friday as protracted selling pressure triggered a close on the back foot, supported by 10 DMA, at 4128. The stochastics are falling, with %K/%D edging out of the overbought. The MACD diff is positive and converging, confirming growing selling pressure; this could set the scene for lower prices towards 4000. A break below this level would confirm the outlook of lower prices and confirm the trend reversal. On the upside, the reaffirmation of support above the 10 DMA could strengthen the trend on the upside in the long run. A long candle body and a long downside wick point to an increased appetite for lower prices, and indicators confirm the outlook for more downside momentum in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher on Friday as intraday trading saw prices supported above the 40 DMA. The market closed at 9163. The %K/%D continues to strengthen in the overbought. The MACD diff is positive and diverging, suggesting continued upside pressures. The indicators point to higher prices in the near term, and to confirm the near-term support at 40 DMA, prices need to take out 9200. A break above this level towards 10000 would confirm the growing bullish momentum. Conversely, appetite for prices below 40 DMA at 8831 could trigger a test of the 10 DMA support level at 8636. Recent candles suggest that there is some bullish momentum for higher prices, but appetite remains marginal. We expect futures to edge higher in the near term,
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday as intraday trading saw futures struggle to break above the 7348 level. This level held firm, and futures closed at 6948. The stochastics continue to strengthen in the overbought, and the MACD diff is positive and diverging, signalling continued buying pressures. To confirm the outlook for higher prices, a break above the resistance at 7348 is needed to set the scene for futures to take out the 40 DMA level at 7453. On the downside, the market needs to take out support at 7000 and then 10 DMA. A narrow candle body with a longer lower wick signals uncertainty about the outlook for higher prices.
