NY 2nd Month Sugar Futures
NY sugar futures opened higher on Friday, but resistance at the 10 DMA at 16.15 caused futures to close below the 16.00 mark at 15.99. The stochastics are seen diverging on the upside, with the %K/%D now rising higher in the neutral territory after converging, which could send a strong buy signal in the near term. The MACD diff is negative and converging. A break of the 10 DMA could trigger gains through 16.64 to 40 DMA at 16.65. On the downside, a complete break below 16.00 could set the stage for bearish momentum towards recent lows of 1,562. A thin candle body with thin wicks suggests that markets lack clarity on the direction of the move, with the 10 DMA capping the upside potential in the near future.
Ldn 2nd Month Sugar Futures
Ldn sugar futures softened marginally yesterday as moderate selling pressures saw futures struggle above the 460 level. This level held firm, and futures closed at 455.40. The stochastics are once again diverging on the upside, with %K/%D strengthening back towards the overbought area. Likewise, the MACD diff is positive and diverging, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 460, which could set the scene for futures to take out the 464 and 40 DMA at 465.23. On the downside, the market needs to take out support at the 10 DMA at 453.88 and then support at 442. The 10 DMA level is now supporting the futures from the downside; however, the 460 level seems robust, as highlighted by Friday’s longer upper wick, suggesting a constrained trading range in the near term.
NY 2nd Month Coffee Futures
NY futures gained ground on Friday as protracted buying pressure prompted a breach of the 367 resistance level at 2241, closing on the front foot at 374.15. The stochastics are rising, and the %K/%D are diverging on the upside. The MACD diff is also seen converging, further outlining the strength of the recent upside. To suggest another bullish candle, futures need to break above the 380 level and then target 393 and 400. On the downside, the break below the 40 DMA of 362.25 could set the scene for lower prices towards the support of the 10 DMA at 356.08. However, the market was well supported above these levels in recent sessions, and the bullish pattern on Friday suggests a continuation of the upside trend, with the 380 level being a key point to watch.
Ldn 2nd Month Coffee Futures
Ldn coffee strengthened on Friday, as protracted buying pressure triggered a close on the front foot above 4500 at 4522. The stochastics are rising, with %K/%D diverging on the upside. The MACD diff is negative and converging. A long bullish candle body with short wicks suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 4664. This would confirm the trend for rising prices, up to 5000. On the downside, a breach of support at 40 DMA at 4335 would strengthen the bearish momentum. This could also trigger losses towards the 100 DMA at 4063. Indicators suggest higher prices in the near term, with 4664 serving as the next critical level to watch.
NY 2nd Month Cocoa Futures
NY cocoa futures weakened on Friday, falling below another robust support level to close at 6216 – an October 2024 low. The stochastics are falling further into oversold territory, and the MACD diff is also negative and diverging, indicating a near-term decline in prices. Friday’s protracted bearish candle suggests lower prices in the near term. Prices need to break below support at 6000 completely before targeting the lower levels. This would confirm the descending triangle pattern. Conversely, if support at current levels can hold firm, this could trigger a marginal reversal to 6720. A break below the longer-term support at 6000 would suggest an accelerating momentum on the downside in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa weakened on Friday, as protracted selling pressure triggered a close on the back foot at 4356 – a level last seen in October 2024. The stochastics are falling further into oversold territory as the MACD diff is negative and diverging. A full bearish candle suggests growing selling pressures; this could set the scene for lower prices to break below the 4296 support level. This would confirm the breakout of the descending triangle formation and the trend for falling prices, down to 4000. On the upside, resistance at 4700 is now capping momentum, and a sustained break above the trend resistance is needed to suggest a longer-term trend reversal. The recent trading pattern suggests an acceleration of the downside trend; however, the market needs to break below the 4296 support completely to confirm this trend.
