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NY 2nd Month Sugar Futures

NY sugar futures edged marginally higher on Friday, but the bullish momentum was not strong enough to break above 18.00 and futures closed at 17.79. The RSI is falling, and the MACD diff is negative and converging. The rejection of prices at 10 DMA at 17.92 has formed a candle with a narrow body but a long wick on the upside, suggesting markets testing and rejecting prices above near resistance. If prices were to break above this level, this could trigger a test of 18.17 and 18.57, the recent highs. To confirm the shooting star formation, futures need to take out 17.48 and then robust support at 17.29. A break below this level would confirm the outlook for lower prices.

Ldn 2nd Month Sugar Futures

Ldn sugar futures strengthened on Friday as protracted buying pressure triggered a close on the front foot at 488. The RSI is rising, and the MACD diff is negative and converging. On the upside, finding support above 484.50 could trigger gains through 491.18, the 20 Bollinger band, towards 500. On the downside, a break below the 481.50 level could trigger losses back towards 477. That level has been supporting futures prices, and a break below it would signal strong selling pressure. Longer upper wick signals that the buying pressure is waning, but the volume has been increasing rapidly; if the futures can break above the Bollinger band resistance, this would confirm further upside conviction.

NY 2nd Month Coffee Futures

NY coffee futures edged lower on Friday as prices tested the upper Bollinger band before closing at 242.50. The indicators continue to favour the upside, with RSI seen higher and the MACD diff being positive. A break below the 20MA Bollinger band at 238.82 would bring into play the recent sessions’ trend support level at 233; this would help create the hanging man formation. Prices have been relatively well supported above the 20 Bollinger band, and in order to indicate an improvement of market sentiment on the upside, futures need to gain a footing above the previous day’s highs at 244.75, which is also the upper Bollinger Band (UBB) and then target the 250 in the near term, a firm resistance level. The break above that resistance level would confirm the outlook for higher prices, but the low volume on Friday points to a lack of conviction above that level.

Ldn 2nd Month Coffee Futures

Ldn coffee futures softened on Friday after struggling to break resistance above 100 DMA at 2224. The market closed at 2213. The RSI is gaining ground, and the MACD diff is positive and diverging, suggesting we could see higher prices in the near term through resistance 2224. The reaffirmation of support here could trigger gains towards the level at 2279; this could strengthen the trend in the long run on the upside. On the downside, a break below 2210 would bring into play the 2200 level, which could set the scene for the lower Bollinger band (LBB) at 2156. Indicators point to upside potential, however, futures need to break above the near term resistance of 100 DMA to confirm the outlook.

NY 2nd Month Cocoa Futures

NY cocoa futures gained ground on Friday as buying pressure triggered a close on the front foot above 2700 at 2724. The RSI is rising closer to the overbought territory, as the MACD diff is positive and diverging on the upside. This suggests we could see higher prices in the near term towards the resistance in the form of UBB at 2763, but the market needs to take out immediate resistance of 2726. On the downside, the candle closed above 2700, and if the prices break below this level, we could see prices test 23.8% fib level at 2683 before 2675. The candle points to a lack of appetite for higher prices, and we expect the trend to reverse in the near term.

Ldn 2nd Month Cocoa Futures

Ldn cocoa strengthened on Friday, as protracted buying pressure triggered a close on the front foot at 1816. The RSI is tailing off on the downside near the overbought. But, the MACD diff is positive and converging. A bullish candle body with a long upper wick suggests a lack of appetite above 76.4% fib level at 1813; this could set the scene for lower prices to break below 1800. This would confirm the trend for falling prices, down to 20 Bollinger Band at 1772. On the upside, a breach of resistance at 1813 would strengthen the bullish momentum to UBB at 1838. This could also trigger gains towards 1850. Indicators paint a mixed picture, but if the resistance at 1813 holds, we could see prices edge lower.

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