NY 2nd Month Sugar Futures
Prices edged lower on Friday as selling pressure prompted futures to close at 20.25. The stochastics are starting to top out and are falling, the MACD diff is converging on the upside and we could see prices edge lower in the near term. To confirm the shooting star candle and increased selling pressure, the market needs to take out 20. Superseding this level, prices need to test support at 19.44. On the upside, prices have been supported below the upper trend channel, this may prompt a test of the recent high at 20.95, before targeting a break of 21. The indicators are edging lower and this could indicate a correction on in the immediate term.
Ldn 2nd Month Sugar Futures
Futures sold off sharply on Friday as protracted selling pressure prompted prices to break through support at 500 to close below the 10 DMA at 496.50. The MACD diff is converging and is set to become negative in the near term, the stochastics have given a sell signal but are still in overbought territory. The indicators and close below 500 could set the scene for lower prices in the near term towards 482.60. The reaffirmation of support at 482.60 would keep momentum on the upside in the long run and could lead to higher prices. Appetite for prices below 500 could trigger prices to push back towards 520. We expect prices to edge lower in the near term.
NY 2nd Month Coffee Futures
Futures consolidated on Friday as prices were supported below 180 before closing above the 38.2% fib level. The MACD diff is negative and starting to diverge on the downside, the stochastics lack conviction and are neutral but prices continue to consolidate. Spikes below 180 could trigger gains towards 189.16, this could trigger gains back to 195 before targeting 200. The band of support between174 and 182 is holding firm but futures have failed to take out resistance at 189.16. Increased selling pressure could trigger losses back towards 174.50, futures need to take out this level in order to confirm the prospect of lower prices. Secondary support stands at the trend support. We could see further consolidation in the near term.
Ldn 2nd Month Coffee Futures
Futures remain on-trend, as prices were well supported at the 10 DMA and closed at 1882. The stochastics are rising, and are in overbought territory but the RSI and MACD diff lack conviction. To confirm the stochastics, and reaffirmation of trend support, futures need to break 1900 before targeting 2000 in the near term. The long term trend favours the upside and we expect prices to remain on-trend. However, if prices fail to break 1900, futures could soften back towards the 23.6% fib level before targeting the 40 DMA and trend support at 1798.7.
NY 2nd Month Cocoa Futures
Sold off sharply on Friday as protracted selling pressure caused a break of support at 2600, and the market closed at 2567. The stochastics are falling but remain overbought, and the MACD diff is converging with the RSI and DMI also weakening, this suggests we could see further losses in the near term towards 2514. A subsequent breach of this level could trigger losses to 2440, which would help confirm the double top. On the upside, an appetite for prices below 2600 may prompt a resumption of buying pressure. The market needs to gain a footing above 2600 before targeting 2700. We expect prices to weaken in the near term as selling momentum builds.
Ldn 2nd Month Cocoa Futures
Cocoa prices softened on Friday as intraday trading prompted futures to close at 2439.41. The stochastics have given a sell signal and are falling out of overbought, the RSI and MACD diff are converging indicating lower prices. The rejection of price at 2500, and now 2450 could set the scene for lower prices towards 2400. On the upside, futures need to take out 2500 before targeting the recent high at 2530, this would prompt rejection of the head and shoulders pattern.