NY 2nd Month Sugar Futures
NY sugar prices weakened on Friday as moderate selling pressure triggered a close at 17.71. The stochastics are falling, with the %K/%D diverging on the downside in oversold territory and yet to show signs of convergence, suggesting further moderate selling pressure before a potential reversal. The MACD diff, however, is negative and converging. Support from the key 200 DMA at 17.64 suggests the market may pause here before any trend reversal. The resistance bands are also tightening, limiting the upside in the medium term, with 18.00 and the 10 DMA at 18.38 now acting as firm resistance. The indicators suggest downside pressure may be waning, but prices do not point to an immediate bounce, so futures could stall at current levels.
Lnd 2nd Month Sugar Futures
Ldn sugar futures opened lower on Friday but recovered to close higher day-on-day at 515.80. The stochastics are converging in oversold territory, with the %K/%D flattening out, suggesting stalling selling pressure. The MACD diff is negative and converging, underscoring this sentiment. On the upside, futures need to break above resistance at the 10 DMA at 526.88 and the 40 DMA at 538.36 to trigger momentum, and then take out 544 to confirm the longer-term outlook. Conversely, appetite for prices below the 200 DMA at 508.04 could trigger a sell-off towards 500. The dragonfly doji candle shows rejection of lower prices and confirms the indicators, which point to an end of the bearish sentiment seen over the last couple of days.
NY 2nd Month Coffee Futures
NY coffee futures held their nerve on Friday as intraday trading caused the market to close at 271. The stochastics are converging on the upside in oversold territory, and the MACD diff is negative and converging, suggesting a potential rebound in prices in the near term. To confirm the outlook for higher prices, futures need to close back above 276 and then target the 10 DMA at 276.30. The 40 DMA is closing in and resisting prices on the upside at around 280, another key resistance level. However, a break below Friday's support could prompt another selling wave towards 260. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, but the technical indicators suggest a modest rebound in the near term.
Lnd 2nd Month Coffee Futures
Ldn coffee edged higher on Friday, finding support at the 10 DMA and closing at 3270. The stochastics are rising sharply, and the MACD diff has flipped into positive territory, a strong bullish signal. To maintain positive momentum, prices need to close above the 40 DMA at 3359 and then target 3400. On the downside, rejection of prices above the 10 DMA could trigger losses back to 3166. Buying pressure remains weak, but the indicators point to accelerating momentum, and the candle with a longer lower wick indicates that the market is rejecting the lows.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading saw prices close at 5267. The %K and %D are diverging on the downside while still in oversold territory, suggesting prices have more room for weakness. The MACD diff is also negative and diverging, pointing to some appetite for lower prices, but futures need to break below support at 5160 to trigger momentum. A break below this level towards 5000 would confirm strong bearish momentum. Conversely, appetite for prices back above 5325 and then 5536 could trigger a test of resistance at the 40 DMA at 5697. The gravestone doji candle shows rejection of higher prices, and we could see prices edge lower in the near term.
Lnd 2nd Month Cocoa Futures
Ldn cocoa futures edged lower on Friday but held above support at 4000, closing at 4023. The %K/%D is showing signs of convergence in oversold territory, while the MACD diff is negative and diverging, painting a mixed picture for the price outlook. The long-legged candle shows indecision about direction, and the length of the wicks points to increased volatility during the day. On the upside, futures need to break above the 10 DMA at 4201 to trigger momentum, and a move towards 4300 would confirm strong upside momentum. Conversely, appetite for prices below 4000 could trigger strong selling momentum. The indicators point to uncertainty around the future price direction; however, the long wicks and higher volume profile suggest a breakout from this range could be sharp and volatile.
