NY 2nd Month Sugar Futures
NY sugar futures gained ground on Friday as buying pressure triggered a close on the front foot at 17.77. The stochastics are rising towards the overbought, as the MACD diff just crossed on the upside, signalling a buy trend in the near term. This suggests we could see higher prices in the near term towards 18.00, but the market needs to take out immediate trend resistance at 17.95 beforehand. On the downside, support around 10 DMA at 17.32 is robust in recent sessions, and if this level does not hold firm, we could see prices retreat back through t0 40 DMA at 17.02 before 17.00. Longer upper wick on Friday points to the appetite for higher prices; however, futures need to take out 18.00 in order to confirm the outlook on the upside.
Ldn 2nd Month Sugar Futures
Ldn sugar strengthened on Friday, as protracted buying pressure triggered a close on the front foot at 469. The stochastics are rising, with %K/%D is diverging on the upside into the overbought. The MACD diff is positive and diverging. Long bullish candle body suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 470, but prices struggled above that level. This would confirm the trend for rising prices, up to the 482.60, the May highs. On the downside, a breach of support at 10 DMA at 459.23 would strengthen the bearish momentum. This could also trigger losses towards the 40 DMA at 456.12. Indicators point to higher prices, but with prices struggling in the past above 470, futures are capped on the upside.
NY 2nd Month Coffee Futures
NY coffee futures gained ground on Friday as protracted buying pressure prompted a test of the 164 level once again to close on the front foot at 163.65. The stochastics are falling yet converging back on the upside, and the %D seen in the overbought territory, highlighting returning buying pressures. The MACD diff is positive and converging. To confirm another bullish candle, futures need to close above 164 and then target 168.65. On the downside, the break below 159.30 could set the scene for lower prices towards the support of the 10 DMA level at 158.43. However, the market struggled below that level in recent sessions, and the bullish engulfing pattern suggests a strong buy signal. We believe that prices will strengthen in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee prices gained ground on Friday, with the appetite for prices above 1642, triggering a close at 1638. The stochastics favour the upside, the %K/%D is overbought and growing, suggesting we could see prices improve in the near term. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and yesterday’s long candle body suggests we could see prices challenge 1642 once again in the near term. In the medium term, futures need to hold above 1600 to target the level at 1650. On the downside, a break below the 1600 support level could trigger losses back to 10 DMA at 1563. A longer candle body and a longer lower wick show that there is an appetite for lower prices, but bulls took over the trading during the day. Futures struggled above 1642, and a break above this level would confirm more upside momentum.
NY 2nd Month Cocoa Futures
NY cocoa futures edged lower on Friday as moderate selling pressure triggered a close at 2452. The stochastics remain near the oversold, with no signs of converging/diverging, and the MACD diff is negative and has lacked conviction. A break of 2450 could trigger losses through 2434, with the secondary level at 2430. On the upside, a break above 10 and 40 DMAs at 2459 could set the scene for a test of 100 DMA at 2494, pointing to a change of trend for more bullish momentum. Friday’s spinning top formation points to market indecisiveness about the outlook for lower prices, however, a break below the 40 DMA support level confirmed the appetite for lower prices.
Ldn 2nd Month Cocoa Futures
London cocoa futures edged higher on Friday as trading saw prices close at 2304. The stochastics remain oversold but are seen converging on the upside, and the MACD diff is negative and does not clearly point to a change in direction. A break of 2277 could trigger losses through 2250, with the secondary level at 2231. On the upside, a break above 10 DMA at 2312 could set the scene for bullish momentum towards 100 DMA at 2329. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 10 DMA, we could see more downside movement in the near term.