NY 2nd Month Sugar Futures
NY sugar futures surged higher on Friday as intraday trading caused futures to break resistance at 11 and close at 11.20. The indicators remain on the upside suggesting higher prices in the near term. The MACD diff is positive and diverging and we expect futures to trend higher in the near term. The close above 11 brings into play 11.55 where prices were rejected in March, secondary resistance stands at 12.73. On the downside, a rejection of prices above 11 could trigger losses back to 10.67 and then target the gap. The three white soldiers and gap higher outlines positive momentum.
London 2nd Month Sugar Futures
London sugar futures edged higher on Friday as buying pressure triggered a breach of resistance at 335 and close at 341.80. The gap between the stochastics suggests higher prices as does the diverging MACD diff on the upside. We expect prices to challenge resistance at the 50% fib level today and a close above this level could trigger gains towards 365.30. On the downside, rejection of prices could set the scene for lower prices to 322.85. The bullish indicators and candles suggest higher prices in the immediate term.
NY 2nd Month Coffee Futures
NY coffee futures consolidated on Friday. The market posted an inside but was well supported around trend support. The stochastics are rising, and the MACD diff is negative but converges suggesting we could see higher prices in the near term towards 108.55, the 10 DMA has closed in fast and we expect this to provide some moderate resistance in the near term. The two spinning tops and appetite for prices at trend support could trigger gains to 112. On the downside, repeated apprehension amongst traders at 108.55 could prompt futures to break trend support with a robust level at 100. The stochastics look to be bottoming out and this could trigger gains on the upside in the medium term.
London 2nd Month Coffee Futures
London coffee futures gained ground on Friday as appetite for prices triggered a test of resistance at 1209 before closing at 1205. The stochastics are rising and the MACD diff is positive. The rejection of prices at 1210 and the 100 DMA could trigger futures to reaffirm support at 1173.80. A breach here could set the scene for a test of 1100. If prices 1173 hold firm futures could break out of the trend channel to 1286 in the long run. The downside tails suggest robust buying pressure at 1173 but this morning’s activity suggests a test of support.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday, the market posted an inside day and spinning top as prices consolidated recent gains to close at 2402. The indicators are still bullish but apprehension amongst traders above 2400 could trigger a retracement to 2305 in the medium term. On the upside, the close above 2402 and inside day may trigger a continuation of the recent trend with an upside target of 2490. The stochastics have made a new recent high and prices have taken out the previous high suggesting bullish momentum but as the stochastics start to converge, we could see support reaffirmed in the near term.
London 2nd Month Cocoa Futures
London cocoa futures failed into resistance at 1950, triggering a retracement to test support at 1869. The stochastics have fallen out of the overbought territory and the MACD diff is positive but converging suggesting selling pressure. To confirm the rejection of prices at 1950 and the hanging man, prices need to take out support at 1869 and then challenge support 1834. On the upside, the reaffirmation of support at 1869 may set the scene for higher prices back to 1950. A break of resistance at this level could trigger gains to 1975.
