NY 2nd Month Sugar Futures
NY Sugar Futures gained ground on Friday as appetite for prices below 10.40 triggered a close at 10.53. The RSI, stochastics, and MACD diff are improving on the upside suggesting improved buying pressure. However, the market has struggled above 10.50 in recent weeks, the upside tails suggest lack of appetite for higher prices. A break of near term resistance would set the scene for higher prices towards 11, helping to confirm the breakout of the pennant. Secondary resistance stands at 11.50. On the downside, rejection of trend resistance would trigger losses back towards 10 where the market has been well supported. A breach of support at 10 would reaffirm the downside trend. Secondary support stands at 9.51.
London 2nd Month Sugar Futures
London Sugar Futures edged higher on Friday as buying pressure prompted a break of the 10 DMA and the market closed at 330. The stochastics improve on the upside and the MACD diff is positive and starting to diverge. However, prices need to close above the 61.8% fib level at 335.07. Secondary resistance stands at 50% fib level at 344.95. Buying pressure is starting to improve but prices are below key resistance keeping momentum on the downside. Rejection of higher prices could trigger another test of 320 in the medium term. Futures have been well bid at 320 this month, a break of this level could set the scene for a test of 315.
NY 2nd Month Coffee Futures
NY Coffee Futures edged lower on Friday as intraday trading caused a close at 117.55. The indicators are falling, the MACD diff is negative as the RSI, and stochastics are starting to fall. Rejection of prices at 121.50 has cap prices on the upside. The market needs to break below support at 100 DMA, with secondary support at 115.02. Superseding that level there is a band of support below the 108.55, to confirm the head and shoulders prices need to break 100. On the upside, prices need to break resistance at 121.50 with secondary support at 125.85 before targeting 130. The long term trend is still on the upside but prices need to break above 130 in the medium term to regain upside conviction.
London 2nd Month Coffee Futures
London Coffee Futures edged lower on Friday as prices failed above 1200 to close at 1188. The stochastics are hovering above oversold territory but the MACD diff is negative and starting to diverge on the downside. The rejection of prices at 1200 could trigger a test of support at 1173. Support at 1150 has held firm recently but the long term trend is still intact. On the upside, the market has been well supported below 1150 and this band of support could help prompt futures to break back above 1200. Prices need to take out resistance at 1250 before targeting 1300. Prices above the 40 DMA have been rejected in recent months.
NY 2nd Month Cocoa Futures
NY Cocoa Futures surged on Friday as protracted buying pressure caused a close on the front foot at 2368. The stochastics have converged and the MACD diff is positive and diverging. The RSI is also rising and to confirm the bullish engulfing candle the market needs to take out 2400, the 40 DMA is closing in fast at 2430. A breach of the 40 DMA would help confirm the break out of the pennant. On the downside, prices failed at 2400 last time and this could cap gains on the upside. Rejection of prices at 2400 would set the scene for lower prices to 2200. The recent consolidation between 2200-2400 could end as prices take out 2400.
London 2nd Month Cocoa Futures
London Cocoa Futures soared higher on Friday as protracted buying pressure prompted a breach of resistance at 1800 to close at 1838. The stochastics are improving as the MACD diff are also positive and diverging. The RSI is positive, to confirm the outlook of higher prices futures need to break through the double top at 1840. The 40 DMA has closed in and a breach of the band of resistance at 1840-1880 would confirm Friday’s candle. On the downside, the formation of a triple top at 1840 could trigger losses back to 1800, secondary support stands at 1729.