NY 2nd Month Sugar Futures
NY sugar futures opened higher on Friday, but resistance of 19.00 caused futures to close lower on the day at 18.75. The stochastics are seen converging on the upside, with the %K/%D edging out of the oversold, and the MACD diff is negative and converging, suggesting growing buying pressures. A break back below 18.63 could trigger losses through 18.20, with the tertiary level at 18.00. On the upside, a break above 19.00 could set the scene for bullish momentum towards 10 and 40 DMAs at 19.12 and 19.41, respectively. A thin candle has been formed, which points to market indecisiveness about higher prices; however, the indicators suggest that we could see higher prices in the near term.
Ldn 2nd Month Sugar Futures
Prices held their nerve on Friday as moderate selling pressure triggered a close at 515.80. The MACD diff is negative and converging. The stochastics are diverging on the upside out of the oversold, a strong buy signal. The inside day on Friday suggests a continuation of the recent upward trend and the stochastics highlight this. A break above 520 could point to further upside momentum, which could set the scene for prices to break above the 10 DMA at 530.91. Conversely, a fall below the 512.60 support could trigger losses to 505 and 500. The indicators point to growing upside momentum, and the inside candle shows a pause before this trend’s continuation.
NY 2nd Month Coffee Futures
NY coffee futures edged lower on Friday after prices broke below the 40 DMA at 231.95, prompting a close at 229.15. The stochastics are falling, with %K/%D diverging on the downside, and the MACD diff is negative and diverging. To confirm the bearish indicators and rejection of prices above 40 DMA, futures need to take out support at 225 and then target 220. On the upside, futures need to close above 233.35 and then test 10 DMA at 237.96 in order to confirm the outlook of higher prices towards 240. We expect futures to weaken in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures gapped lower on Friday, but support at 4150 caused the market to close at that level. The stochastics are falling, with %K/%D diverging on the downside, and the MACD diff is negative and diverging, suggesting lower prices in the near term. A break of the robust trend line and the 40 DMA level indicates a robust sell signal, and we could see prices edge lower in the near term. To confirm this, futures must first breach the 4000 before targeting the 100 level. Alternatively, a breach of the trendline back above 4340 could suggest the end of the recent downside. The narrow candle body with a lack of shadows points to a growing appetite on the downside.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at 6720 once again. This level held firmly, and the future closed at 6955. The stochastics are falling, with %K/%D trading in the oversold, and the MACD diff is negative and converging, painting a mixed picture. To confirm the outlook for lower prices, futures need to break below the support at 6720, which could set the scene for futures to take out the 100 DMA at 6442. On the upside, the market needs to take out resistance of 7025 and then support at 10 DMA at 7261. If futures break below the current support, we could see prices edge lower.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at 100 DMA. This level held firm, and the future closed at 5456. The stochastics are falling further into the oversold, and the MACD diff is negative and converging, signalling waning buying pressures. To confirm the outlook for lower prices, a break above the support at 100 DMA at 5355 could set the scene for futures to take out the 5000 level. On the upside, the market needs to take out resistance at 10 DMA at 5756 and then 6000. A narrow candle body with a longer lower wick signals uncertainty about the outlook for lower prices.
