NY 2nd Month Sugar Futures
NY sugar futures lost ground on Friday as selling pressure intensified, prices struggled to break below 10 DMA once again, closing at 17.81. The MACD diff is positive and diverging marginally, suggesting a lack of appetite for higher prices. The stochastics are diverging on the upside, but %K is seen tailing off, which could point to convergence in the near term. To help confirm another bearish candle, prices need to break below through 17.48 which is a robust support level, secondary support stands at 17.29. On the upside, if futures can find support around 17.50, this could set the scene for higher prices back above 18.00 before targeting 40 DMA at 18.23. Volumes dropped from Wednesday trading but is seen on the rise again, and if the futures break below the near term support, we could see selling pressure intensify.
Ldn 2nd Month Sugar Futures
Ldn sugar futures softened on Friday after finding support above 10 DMA once again. The market closed at 482.10. The stochastics are gaining ground, diverging on the upside, and the MACD diff is positive and diverging, highlighting the recent market strength. Today, the candle has opened well below the key support levels, and if the selling pressure persists, this would bring into play the 471.80 level, which could set the scene for 470. On the upside, futures need to gain back above 480 and 494.90– the previous day’s high - in order to confirm upside momentum. Appetite above these levels could trigger gains towards the level at 100 DMA at 499.47; this could strengthen the trend in the long run on the upside. The big gap between today’s trading and Friday suggests strong selling pressure, but the futures need to break below 471.80 to confirm this momentum in the near term.
NY 2nd Month Coffee Futures
NY coffee futures softened on Friday after the candle opened below the previous day’s close. The market closed lower at 252.05. The stochastics are falling, with %K/%D about to converge on the downside in the overbought territory, and the MACD diff is positive and converging, paving the way for lower prices in the near term. The reaffirmation of support at 250 could set the scene for higher prices back to test the 260.45 level – recent highs. On the downside, futures need to break below the support of 10 DMA at 245.67 in order to confirm the bearish trend. The trend support level has been robust, and a break below this level could help confirm lower prices, breaking out of the ascending triangle pattern in the longer term.
Ldn 2nd Month Coffee Futures
Lnd coffee futures edged marginally higher on Friday, but the bullish momentum was not strong enough to break above 2279, and futures closed at 2270. The stochastics continue to rise, yet seen converging, as %K is seen tailing off in the overbought, and the MACD diff is positive and diverging. The rejection of prices at 2279 has formed a candle with a narrow body but a long wick on the upside, suggesting markets testing and rejecting prices above resistance. If prices were to break above this level, this could trigger a test of 2300 and then 2381, the recent highs. To confirm the shooting star formation, futures need to take out 100 and 10 DMAs at 2228 and 2222, respectively. A break below these levels would confirm the outlook for lower prices.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading saw prices close at 2811. The RSI is falling, and %K/%D are about to converge on the downside, a strong sell signal. The MACD diff is positive and is showing signs of convergence, suggesting a lack of appetite for higher prices, but futures need to break below 2800 to trigger the momentum. A break below this level towards 2726 would confirm the growing selling pressure. Conversely, an appetite for prices back above 2838 could trigger a test of 2850. A doji candle with a long lower leg shows indecision about higher prices. The indicators point to a change of trend in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures started the day on the front foot on Friday but softened throughout the day after finding resistance at 1858. The market closed at 1848. The stochastics are converging in the overbought territory, and the MACD diff is positive and converging, suggesting we could see lower prices in the near term. A break below 1837 would bring into play the 76.4% fib level at 1813, which could set the scene for 1800. On the upside, futures need to gain back above 1858 in order to confirm upside momentum. The appetite above that level could trigger gains towards the 1888 level; this could strengthen the trend in the long run on the upside. The hanging man formation points to an end of the uptrend, and we expect to see the end of the bull run in the near term.
