NY 2nd Month Sugar Futures
NY sugar strengthened on Friday, as protracted buying pressure triggered a close on the front foot at 18.10. The stochastics are rising, with %K/%D about to converge on the upside. The MACD diff is negative and converging. Long bullish candle body with short lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the trend resistance at 18.53, but prices struggled above that level. This would confirm the trend for rising prices, up to 19.00. On the downside, a breach of support at 10 DMA at 17.81 would strengthen the bearish momentum. This could also trigger losses towards the 40 DMA at 17.46. Indicators point to higher prices, but with prices falling above the resistance, futures are capped on the upside.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground on Friday as buying pressure triggered a close on the front foot at 470.70. The stochastics are rising with the %K/%D sending a buy signal, as the MACD diff is negative and converging on the upside. This suggests we could see higher prices in the near term towards 470 before testing the 478.80 level. On the downside, the candle found support at the 10 DMA level at 458.64, and if the prices break through this level, we could see prices retreat back through the 40 DMA at 456.39. A break above both 10 and 40 DMA levels is a bullish signal, and we expect futures to edge higher today.
NY 2nd Month Coffee Futures
NY coffee futures rallied on Friday as protracted buying pressure triggered a close on the front foot at 161.35. The RSI is rising, while %K/%D are diverging on the upside. The MACD diff just converged on the upside, a clear buy signal. On the upside, finding support above 160 could trigger gains through 164.65 towards 168.65 – May highs. On the downside, a break below the support level of 40 DMA at 156.35 could trigger losses back towards 155.40 to 10 DMA at 153.61. The long bullish candle highlights that the selling pressure is subsiding, and the bullish outlook is on the horizon.
Ldn 2nd Month Coffee Futures
Ldn coffee held the nerve on Friday as intraday trading caused futures to close at 1767. RSI is rising marginally, and %K/%D is converging on the upside in the oversold. The MACD diff is positive but lacks the conviction to point out an outlook. To maintain positive momentum, prices need to close above 1772 and then target 1800. On the downside, the rejection of prices above 1770 could trigger losses back to 1750 and then 10 DMA at 1726, a firm support level. Buying pressure has been weak, and the indicators point to a continuation of that momentum. The narrow candle body and short wicks confirm market uncertainty. The break of resistance at 1772 could confirm the outlook for higher prices in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures sold off on Friday after investors rejected prices above 2434, prompting a close below 40 DMA at 2402, at 2371. The stochastics are rising, yet converging, with RSIs in neutral territory; the %K/%D is seen converging on the downside, suggesting a short-term negative trend. The MACD diff is positive and converging, indicating improving sentiment on the downside. To confirm the bearish candle, prices need to break below the support level at 2355 before the 10 DMA level at 2353. Secondary support stands at 2317, a break below would confirm the strong bearish momentum. On the upside, to regain upside conviction, futures need to close back above 40 DMA at 2402 and then 2434 in the near term. Near term momentum is on the downside, the close below the shorter-term DMA confirms this trend.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures softened on Friday after prices failed above the 40 DMA level, prompting a close on the back foot at 2262. The stochastics are rising and converging, and the MACD diff is also converging on the downside, outlining the weakness in the market. Selling pressure has been strong; however, yesterday's narrow candle body suggests a lack of appetite for lower prices. The 10 DMA at the 2238 level has been robust in the last couple of sessions, however, we do not expect this level to remain to hold. A break below this level could set the scene for a 38.2% fib level at 2211. Alternatively, if prices can gain a footing above the 2300 levels, the bulls could then target 100 DMA at 2316 in order to regain upside conviction. We anticipate prices to remain on the back foot in the near term.