NY 2nd Month Sugar Futures
NY sugar futures edged higher on Friday as intraday trading saw prices supported above 40 DMA. The market closed at 19.16. The %K/%D is tailing off on the upside, suggesting a possible change of trend in the near term. The MACD diff is positive and flat, suggesting waning selling pressures. The indicators suggest growing upside momentum in the near term. To confirm higher prices in the near term, prices need to take out 19.20. A break above this level towards 19.50 would confirm the growing bullish momentum to 20.00. Conversely, appetite for prices back below the shorter-term DMAs could trigger a test of 18.63; tertiary support stands at 18.00. Narrow candle bodies in recent days point to market uncertainty around price movement; however, indicators point to growing upside momentum. We expect prices to edge higher in the near term.
Ldn 2nd Month Sugar Futures
Prices strengthened on Friday, breaking above the resistance of 540.20, as moderate buying pressure triggered a close at 542.30. The stochastics have converged on the upside, sending a strong buy signal. The MACD diff is positive and diverging, suggesting growing buying pressures. Dips in the market have not been well-bid in the last couple of weeks, and in order to confirm the outlook for higher prices, futures need to break above the current resistance at 550 and then the highs of 575. Conversely, a break below 10 DMA at 537.14 support line could set the scene for a test of 525. With the candle crossing above the resistance level, we could see a potential change in the upside trend in the near term.
NY 2nd Month Coffee Futures
NY coffee futures softened on Friday after struggling above the 230 level to close at 225. The stochastics have converged on the upside, as the MACD remains negative, painting a mixed picture regarding the price outlook. A break below the 10 DMA level at 225.27 would bring into play 220. On the upside, futures need to gain back above 230 in order to confirm upside momentum. The reaffirmation of support here could trigger gains towards the 240 level; this could strengthen the trend on the upside in the long run. The longer upper wick points to an increased appetite on the upside, but we expect prices to be capped by 230 in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve on Friday as intraday trading saw futures test appetite at 4200 once again. This level held firm, and the future closed at 4104. The stochastics are rising, with %K/%D converging on the upside out of the oversold, and the MACD diff is negative and converging on the upside, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above the robust resistance of 4200, which could set the scene for futures to take out the recent high at 4338. On the downside, the market needs to take out the trend support and then 4000. The candle found support above 10 DMA in the meantime, and a longer upper wick signals an appetite for higher prices. If the futures break above the current resistance, we could see prices edge higher in the near term.
NY 2nd Month Cocoa Futures
NY sugar futures opened lower on Friday but found the strength during the day to close higher on the day at 8905. The %K/%D is falling. The MACD diff is positive and converging, suggesting growing selling pressures. The indicators point to lower prices in the near term, and to confirm the rejection of the support, prices need to take out the 40 DMA at 8541. A break below this level towards 8000 would confirm the strong bearish momentum. Conversely, appetite for prices above the 10 DMA level could trigger a test of 10000. A spinning top candle after a bearish candle signals uncertainty about the outlook for trend reversal, and a break below the key resistance confirms there is more appetite for downside potential.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday after piercing the support level at 7348. The market closed lower at 7319. The stochastics are falling, with %K/%D just diverging on the downside, and the MACD diff is negative and diverging. On the downside, futures need to break below the support of 40 DMA at 7114 in order to confirm the continuation of the bearish trend. Indeed, this support level has been robust in the last couple of sessions; a break below this level would suggest a strong conviction on the downside. Alternatively, the reaffirmation of support above could set the scene for higher prices back to test the 10 DMA level at 7661 once again, confirming an inverse hammer formation.
