NY 2nd Month Sugar Futures
NY sugar futures edged lower on Friday after prices failed to break above the 19.00 level, prompting a close at 18.75. The stochastics are falling, with %K/%D edging towards oversold, and the MACD diff just converged on the downside, suggesting the outlook for lower prices. To confirm the bearish indicators and rejection of prices above 19.00, futures need to take out the support of 40 DMA at 18.76 and then target 18.50. On the upside, futures need to close above 10 DMA at 19.24 and then test the 19.50 level in order to confirm the outlook of higher prices towards 20.00. We expect futures to weaken in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower on Friday as marginal selling pressure saw prices close at 526.20. The %K/%D is falling, and the MACD diff is negative and diverging, suggesting further appetite for lower prices. However, to confirm this, futures need to break below the robust support levels of 100 and 40 DMA at 523.63 and 522.93, respectively. A break below these levels towards 519 would confirm the strong bearish momentum. Conversely, appetite for prices above the 530 could trigger a test of 10 DMA at 537.44. A long-legged doji candle shows indecision about either direction as markets struggled below the longer-term DMAs. The indicators point to further weakness, but futures need to close below these levels to confirm the near-term outlook.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve on Friday as intraday trading saw prices close at 376.40. The %K/%D is negative and diverging, suggesting further bearish momentum. The MACD diff is negative and diverging, highlighting growing selling pressure. The indicators point to lower prices in the near term, and to confirm this, futures need to break the robust trend support level – currently at 375 - which could then trigger a test of support at 350. On the upside, the confirmation of support at current levels could see prices break back above the 381.40 level before the 10 DMA at 384.64. A negative doji candle after a bearish candle signalled market uncertainty for lower prices, and prices struggled below the trend support in recent days. This level is essential for shaping the short-term outlook for futures.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve on Friday as intraday trading saw futures close at 5354. The stochastics are falling, 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 critical support of 100 DMA ay 5235, which could set the scene for futures to take out 5000. On the upside, the market needs to take out resistance of 10 DMA at 5473 and then 5500. The candle found support above 5350, and a long upper wick signals a lack of appetite for lower prices. If the futures break below the current support, we could see prices edge lower.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as futures continued to fluctuate around the 8000 level, closing just above it at 8012. The stochastics are rising, with %K trading out of the oversold, and the MACD diff is positive and diverging, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the 8000 level completely before targeting the 200 DMA at 8378. On the downside, the market needs to take out support at 7800. With the 8100 resistance still intact, futures are likely to struggle to make significant new highs in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher on Friday, closing above the 10 DMA level at 6245. The stochastics are rising, with %K/%D diverging on the upside out of the oversold territory, and the MACD diff is positive and diverging. The reaffirmation of support at 10 DMA at 5220 could set the scene for higher prices to test the 6518 level. On the downside, futures need to break below the support of 6000 in order to confirm the longer-term outlook on the downside. Thin candle bodies within a tight trading range suggest that markets lack the incentive to break out of the current levels. We expect the rangebound momentum to continue in the near term.
