2nd Month NY Sugar Futures
NY futures failed to gain a footing above 10.50 on Friday; the market closed at 10.33. The MACD diff lacks conviction, and the stochastics are also falling further into oversold. The ADX and DMI outline the strong trend on the downside. The upside tails describe lack of appetite for higher prices, triggering a test of support at 10. A break of this level would bring into play 9.51or the 138.2% fib level, and confirm the descending triangle. On the upside, futures need to gain a footing above 11 before the bulls can target 12. If the band of support between 10-10.41 holds firm, this could set the scene for gains in the long run.
2nd Month London Sugar Futures
London futures edged lower on Friday after once again failing to gain a footing above the 10 DMA. The market closed at 331.57. The stochastics are falling, and the MACD diff is converging, suggesting lower prices. Lack of appetite for higher prices is outlined by the upside tails and double top at the 10 DMA. However, support at 320 has been robust, and this could trigger gains back towards 335.07 before the targeting 50% at 344.95. On the downside, a break of support at 323 could trigger losses towards 303.10.
2nd Month NY Coffee Futures
NY futures buckled on Friday as intraday trading caused prices to test appetite at 115.85. The market closed at 116.50 back above 100DMA. The stochastics are falling sharply towards the oversold territory, and the MACD diff is negative and has declined. We expect prices soften in the immediate term towards the 40 DMA at 112.66. Secondary support stands at 61.8% fib level at 108.55. On the upside, appetite for prices below the 100 DMA could set the scene for higher prices back towards 120 with robust resistance at 121.50. To confirm the outlook of higher prices, futures need to take out the recent high at 130 and report a new high from the stochastics.
2nd Month London Coffee Futures
London futures edged lower on Friday as selling pressure prompted a close at 1220. The stochastics are falling further into the oversold territory as the MACD diff lacks conviction. We expect futures to soften in the near term as futures reaffirm trend support, a break of this level could set the scene for lower prices to 1173. Conversely, futures could set the scene for higher prices to 1237 and then the 40 DMA at 1264. Rallied have been sold recently but a close above 1264 could set the scene for higher prices towards 1324.
2nd Month NY Cocoa Futures
NY futures softened on Friday prompting futures to close on the back foot at 2260. Prices remained within the pennant, and the stochastics are rising. The MACD diff is positive and starting to diverge on the upside; this needs to be confirmed by the breakout of the pennant through resistance at 2300 before targeting 2350 and 2400. On the downside, rejection of prices at 2300 would set the scene for lower prices, but futures need to take out 2165 in order to confirm the downtrend.
2nd Month London Cocoa Futures
London futures edged higher Friday after being supported below 1750 once again. Resistance of the lower trend channel stood firm, and the market closed at 1771. The stochastics are starting to improve and the MACD diff is also diverging on the upside suggesting we could see futures improve through 1800, break towards 1877 would help confirm the rejection of the ascending triangle. Conversely, if resistance at 1800 holds firm, this would set the scene for prices back to 1729. Secondary support stands at 1700. The trend is firmly on the downside at this time, and if futures remain below 1850 the trend will remain on the downside.