NY 2nd Month Sugar Futures
NY sugar futures rallied on Friday as protracted buying pressure triggered a close on the front foot at 19.81. The RSI is rising, while %K/%D have given a buy signal and are diverging. The MACD diff is negative and converging, confirming the buy signal. On the upside, appetite above 20 could trigger gains through 40 DMA at 20.08 towards 20.34 – September highs. On the downside, a break below the support level of 19.44 could trigger losses back towards 19.10 and 19.00. The long bullish candle highlights and a close above 10 DMA that the selling pressure is subsiding, and the bullish outlook is on the horizon.
Ldn 2nd Month Sugar Futures
Ldn sugar futures gained ground on Friday as protracted buying pressure prompted a test of the 517.60 level once again to close on the front foot at 515.50. The stochastics are rising after the %K/%D have converged on the upside, giving a buy signal and are now diverging. The MACD is negative and converging. To confirm another bullish candle, futures need to break above the 517.60 and then target the 520. On the downside, the break below 10 DMA at 509.45 could set the scene for lower prices towards the support of 40 DMA at 506.47. However, the market struggled below the immediate support of 40 DMA, providing support from the downside, suggesting further upside momentum. We believe that prices will strengthen in the near term.
NY 2nd Month Coffee Futures
NY coffee held the nerve on Friday as intraday trading caused futures to close at 204.25. RSI is rising marginally, and %K/%D are converging on the upside, confirming the change of trend in the near term. The MACD diff is positive and diverging, suggesting waning selling pressure. To maintain positive momentum, prices need to close above 209.65 and then target 210, which is the last weeks' highs. On the downside, the rejection of prices above 210 could trigger losses back to the 10 DMA level at 199.74 before targeting trend support at 40 DMA at 191.27. Buying pressure remains weak, however, the indicators point to the strengthening of that momentum. However, the doji candle confirms market uncertainty for higher prices. The break of resistance above 209.65 could confirm the outlook for higher prices in the near term.
Ldn 2nd Month Coffee Futures
Prices weakened on Friday as moderate selling pressure triggered a close above the 2100 support level; the market closed at 2116. The stochastics are falling, signalling a continuation in the bearish trend. The MACD is negative and diverging marginally, and the doji candle formation supports market indecisiveness. Dips in the market have not been well bid in the last couple of sessions, but in order to confirm the bearish momentum, prices need to break below the current support of 2100 and then 2066. Conversely, a break above the 10 DMA resistance line at 2124 could set the scene for a test of 2173. We expect prices to remain supported below the 10 DMA resistance level in the near term.
NY 2nd Month Cocoa Futures
NY cocoa prices gained ground on Friday, testing resistance at 2800, triggering a close at 2789. The stochastics favour the upside, with the %K stochastic, is overbought. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and yesterday's candle suggests we could see prices challenge 2821 in the near term. In the medium term, futures need to hold above 2800. On the downside, a break below the 2726 support level could trigger losses back to 10 DMA at 2707 and 2675. Narrow candle bodies point to a softer appetite above the current resistance level. We anticipate prices to improve today as moderate buying pressure continues.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures consolidated on Friday as protracted buying pressure triggered a close on the front foot at 1873. The RSI is rising, and %K/%D is diverging on the upside in the overbought. The MACD diff is positive and converging, suggesting waning buying pressure. The indicators point to a change of momentum in the near term, and to confirm lower prices; prices need to take out the trend support at 1857. A break below this level towards 1850 would confirm the strong bearish momentum. Conversely, an appetite for prices above 1888 could trigger a test of resistance at 1900. Longer upper wick points to increased appetite on the upside, and a break above 1888 would confirm the outlook for higher prices.