NY 2nd Month Sugar Futures
NY sugar futures edged slightly higher on Friday but struggled to breach the resistance of 18.00, prompting a close just below at 17.99. The indicators suggest we could see higher prices in the near term. The stochastics are starting to converge on the upside in the oversold, and the MACD diff is negative and flat. We expect futures to edge higher in the near term towards 40 DMA at 18.19, with the 10 DMA at 18.58 acting as a robust level on the upside. Alternatively, support at 17.71 is holding firm. We expect futures to firm up in the near term; however, DMAs approach, capping strong upside momentum. A breach of 10 DMA could send a strong signal on the upside.
Ldn 2nd Month Sugar Futures
Ldn sugar edged higher on Friday as intraday trading caused futures to test appetite at 40 DMA at 506.78; the market closed below this level at 505.50. Stochastics are rising, and %K/%D are about to converge on the upside out of the oversold, confirming positive momentum. The MACD diff lacks the conviction to point out an outlook in the meantime. To maintain positive momentum, prices need to close above 40 DMA and then target 512.60. On the downside, the rejection of prices above current levels could trigger losses back to the 493.80 level. While the indicators suggest a potential trend change in the near term, the buying pressure remains weak, and Friday’s doji candle confirms market uncertainty. Markets need to break the 40 DMA first to confirm the outlook.
NY 2nd Month Coffee Futures
NY coffee futures edged lower on Friday as they tested the 10 DMA once again to close at 384.91. The stochastics have converged once again, sending a strong sell signal. The MACD diff is negative and diverging, suggesting lower prices in the near term. To confirm the bearish indicators and rejection of prices above 10 DMA, futures need to take out support at 381.40 and then target the 40 DMA level at 371.25. On the upside, futures need to close above 400 and then target 415 in order to confirm the outlook of higher prices towards recent highs. A long lower wick points to a lack of appetite for lower prices; however, the indicators suggest otherwise. To confirm the indicators, prices need to take out the current support of 381 to confirm the outlook for lower prices. We expect futures to weaken in the near term.
Ldn 2nd Month Coffee Futures
Prices weakened on Friday as moderate selling pressure triggered a close below the 40 DMA support level; the market closed at 5353. The stochastics are falling, and the MACD is negative and diverging, suggesting growing selling pressure. Dips in the market have been well bid in the last couple of sessions but in order to confirm the outlook for lower prices, futures need to break below the regression support trendline at 5350 before targeting the 100 DMA at 5082. Conversely, a break back above 10 and 40 DMAs of 5470 could set the scene for a test of 5569. With 10 DMA crossing below the 40 DMA – a death cross – the downside pressures are growing, and we could see lower prices in the near term. To confirm this, the 5350 level needs to be breached first.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at 100 and 10 DMA. However, these levels held firm, and futures closed at 8292. The stochastics are rising, with the %K/%D seen converging on the upside, about to send a strong buy signal. The MACD diff is negative and converging on the upside, also suggesting growing buying pressures. To confirm the outlook for higher prices, futures need to break above the 100 and 10 DMA levels of 8405 and 8603, respectively. This could set the scene for futures to take out the 9000 level. On the downside, the market needs to take out the robust support at 8000 to indicate further downside. While the indicators suggest a possible trend change in the near term, futures must first breach the DMA resistance levels to confirm the outlook on the upside in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures gained ground on Friday as moderate bullish sentiment saw futures struggle above the 100 DMA resistance of 6647 once again, prompting a close at 6534. The stochastics are seen rising out of the oversold, and the MACD diff is negative and converging, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above the resistance of 100 DMA at 6647, which could set the scene for futures to take out the 10 DMA level at 6874. On the downside, the market needs to take out support at 6500 and then support at 6000. The 100 DMA is capping strong upside momentum, and to confirm the indicators’ outlook on the upside, this level has to be breached first.
