NY 2nd Month Sugar Futures
NY sugar futures edged lower on Friday as intraday trading saw prices well supported below 14, prompting a close above at 14.04. The stochastic are rising and the MACD diff is positive and starting to diverge suggesting a strong outlook on the upside. The downside tails suggest appetite for prices below 14, this could see prices improve in the near term back towards 14.17. A break of 14.17 would set the scene a break out towards 14.50, this would confirm the bullish engulfing candle. On the downside, the two hanging man candles suggest that we selling pressure is improving and this could trigger losses back towards 13.82 before the 100 DMA at 13.13. The long term trend remains on the upside and we expect support at the 100 DMA to hold firm and keep the trend intact. Momentum is on the upside but continues to fail at 14.17, futures need to close abvoe this level to regian upside conviction after the two hanging man candles.
Ldn 2nd Month Sugar Futures
Ldn sugar futures consoldiated yesterday after prices failed above 403.14, but was well supported at 398.05. The market closed at 401.80. The indicators are rising into overbought, and the MACD diff is negative and converging outlining an improved outlook on the upside. Yesterday's long legged doji suggests uncertainty in the market, this could trigger losses back towards previous trend support. The spiked above 403 suggest lack of appetite for prices at this level, a break of trend support at 391.90 before targeting the 40 DMA at 386.36. A break of the 40 DMA could set the scene for lower prices to 370.84. On the upside, to confirm the bullish engulfing candle, futures need to break above 403 and then target 415. The indicators give a mixed outlook but a close above 403 would help the market regain upside momentum.
NY 2nd Month Coffee Futures
NY coffee futures consolidated yesterday after prices were well supported below 108.55, prompting a close at 110. The stochastics are rising into positive territory, and the MACD diff is positive and diverging suggesting higher prices in the near term back towards 112.43. The ADX and DMI are starting to cross on the upside improving the outlook on the upside. The reaffirmation of support at 108.55 and the hammer candle could trigger gains towards 112.43 before targeting 115. A break above this level could suggest a change in trend towards 120. Buyng pressure is improving but the rejection of prices at the 40 DMA and previous trend support could set the scene for another test of 107 before the bears target 104.20. We expect prices to remain within the recent range today and test appetite around 112.
Ldn 2nd Month Coffee Futures
Ldn coffee futures gained ground yesterday as buying pressure prompted a close on the frontfoot at 1366. The inside suggests we could see a continuation of higher prices in the near term. The stochastics are rising into overbought territory and the MACD diff is positive and diverging suggesting higher prices in the near term. Trend support has held firm in recent weeks and this could trigger gains to 1391.68, with secondary resistance at 1400, this would confirm the ascending triangle. On the downside, lack of appetite for prices above 1356 may set the scene for a correction to the downside. A break of trends support could pave the way for lower prices through the 50% fib level before the more robust level at 1250. Near term momentum is on the upside and expect buying pressure to keep prices abvoe key support at 1356 today.
NY 2nd Month Cocoa Futures
NY cocoa futures sold off yesterday after futures failed above 2400 once again, and this prompted a close on the back foot at 2357. The stochastics are rising suggesting an improved outlook on the upside, the MACD diff is positive and is diverging despite yesterday's losses. The reaffirmation of resistance yesterday could trigger losses back to 2290 at the 23.6% fib level, a break below this level would help confirm the outlook of lower prices and the trend of lower prices. On the upside, if support at 2357 holds firm, this could trigger some of yesterday's gains to be taken back but the market needs to take out the resistive 200 DMA and then trend resistance at 2445. A break of this level could trigger a challenge of the 50% fib level. We expect prices to soften in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures buckled yesterday after futures rejected the 100 DMA at 2169, prompting a close on the back foot at 2133. The stochastics are rising towards positive territory, the MACD diff is positive and diverging on the upside suggesting higher prices in the near term. Futures need to gain a footing above the 100 DMA and the 40 DMA before targeting 2300. However, the rejection of the 100 DMA could trigger losses to through 2050 towards 2000. The trend in the near term is on the downside and the reaffirmation of resistance helps to confirm this trend. We expect prices to weaken in the near term before but futures need to take out the recent low to confirm momentum.
