NY 2nd Month Sugar Futures
NY sugar futures recovered from early losses on Friday, as appetite for prices around 11.80 prompted a close at 10.97. The indicators remain elevated as the MACD diff is positive and the stochastics hover around overbought. This could set the scene for higher prices back to 11.30 before 11.50. The downside tails suggest an appetite for prices and this helps improve the outlook on the upside but futures need to break above 11.50 to confirm the inverse head and shoulders. Conversely, rejection of prices above 11 could trigger a retracement back towards 10.50 where the 40 DMA is. A subsequent breach of this level would bring into play 10.
LDN 2nd Month Sugar Futures
London futures gained ground on Friday as buying pressure prompted a close back above the 50% fib level at 349.40. The indicators suggest higher prices as the stochastics are elevated and the MACD diff positive. The reaffirmation of support at the 61.8% fib level could set the scene for higher prices to 354.83. The 100 DMA remains the key upside level to improve the outlook in the longer run. Alternatively, there has been resistance above the 50% fib level and this could set the scene for a retracement back to 335.07.
NY 2nd Month Coffee Futures
NY coffee futures sold off once again on Friday as protracted selling pressure caused futures to breach support at 100 and close at 98.15. The stochastics are falling and the MACD diff is diverging on the downside suggesting lower prices. The ADX is starting to improve suggesting the strong downtrend. Continued selling pressure could prompt futures to test support at 95.80 a break here would help confirm the descending triangle. Secondary support stands at 93.40. Appetite for prices around 95 could prompt futures to push back above 100 but we anticipate the trend to stay on the downside.
Ldn 2nd Month Coffee Futures
London coffee futures buckled on Friday a selling pressure prompted a breach of the 40 DMA at 1191 and closed at 1189. The stochastics are falling sharply and the MACD diff is positive and diverging. Friday’s full candle and close below the 40 DMA could set the scene for lower prices in the coming sessions. A break back below the upper trend channel could set the scene for lower prices to 138.2%, the 150% fib level at 1145 is an important level on the downside. On the upside, if prices can hold above the upper trend channel we could see futures push back above 1209 before targeting 1247.
NY 2nd Month Cocoa Futures
NY cocoa futures were well supported at the 40 DMA, triggering a strong recovery and close on the front foot at 2408. The stochastics are climbing and the MACD diff is positive, to help confirm the hammer candle and Friday’s recovery the market needs to hold above 2400 and previous trend resistance and the upside target would be the 200 DMA at 2491. On the downside, if prices fail above 2400 this could set the scene for a test of support at 2360. Secondary support is at 2300 where the market has been well supported in recent weeks.
Ldn 2nd Month Cocoa Futures
London futures closed were bid below the lower trend channel on Friday, prompting a close at 1840. The stochastics are starting to improve and the MACD diff is converging in negative territory suggesting an improvement of sentiment. Futures need to close back above the 40 DMA in the near term to help confirm the hammer candle. The gap needs to be closed in order to regain upside traction. On the downside, a breach of support at 1800 would help confirm the outlook of lower prices towards the recent low at 1750.
