NY 2nd Month Sugar Futures
NY sugar futures rallied on Friday, reaching the highs last seen in December and closed just above resistance 19.52 at 19.53. Today the candle opened higher and now trades at 19.40. The stochastics continued to rise, with %K is now overbought, and the MACD diff is positive and diverging, which could suggest a change of momentum in the near term. Volume on Friday was strong, and so this momentum to continue, futures need to break above 19.50 completely before 20.00. Alternatively, if futures struggle above 19.50, this could set the scene for a break below 100 DMA at 18.65 before 18.50. The indicators point to slowing upside momentum in the near term, and to confirm this, futures need to solidify resistance at 19.50 today.
Ldn 2nd Month Sugar Futures
Ldn sugar futures jumped higher on Friday as prices closed at 519.10. The futures opened even higher today and now trade at 529.70, a March 2017 high. The indicators favour the upside but show signs of convergence as %K is seen tailing off in the overbought. MACD diff is positive and diverging, outlining recent buying pressures. A break above 531 would bring into play the resistance level at 550 and 564.50, which was a solid resistance level in 2017. On the downside, futures need to break below 525.63 and then target 517.80 in the near term. The jump yesterday and three white soldiers' formation suggests further upside momentum, but the indicators point to an upcoming softness in the near term.
NY 2nd Month Coffee Futures
NY coffee futures opened lower on Friday but managed to gain marginal ground to close at 224.25. The stochastics are oversold but converging, and the MACD diff is negative but saw a slowdown in downside momentum. On the downside, a break of the 220 could trigger losses through 209.65, with the tertiary level at 200 DMA at 203.47. On the upside, a break above the previous sessions’ highs at 230.75 could set the scene for upside momentum up to 10 DMA at 236.26. After the last session’s market indecisiveness – the spinning top formation – as prices struggle below 220, we could see more upside movement in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve on Friday as intraday trading saw prices close at 2038. The RSI is rising, and %K/%D is about to converge on the upside in the oversold, a strong buy signal. The MACD diff is negative and converging, suggesting waning selling pressure. The indicators point to higher prices in the near term, and to confirm the rejection of the resistance, prices need to take out the 2078 level. A break above this level towards the 10 DMA at 2115 would confirm the growing bullish momentum. Conversely, appetite for prices below 2000 could trigger a test of support of 38.2% fib level at 1987. A positive candle after a similar bearish candle signals market uncertainty about further downside momentum. Indeed, today’s candle has already opened above Friday’s highs. We expect futures to gain ground in the near term.
NY 2nd Month Cocoa Futures
NY cocoa strengthened on Friday, as protracted buying pressure triggered a close on the front foot at 2620. The stochastics continue to rise, with %K/%D is seen diverging out of the oversold. The MACD diff is negative and converging. Long bullish candle body with a longer lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 38.2% fib level at 2620 before 40 DMA at 2637. This would confirm the trend for rising prices, up to 2653. On the downside, a breach of support at a 50% fib level at 2553 would strengthen the downside impetus. This could also trigger losses towards 2500. Indicators point to higher prices, and with futures breaking above the 10 DMA resistance level, we expect to see prices edge higher today.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures rallied on Friday as protracted buying pressure triggered a close on the front foot at 1743. The stochastics have converged on the upside in the oversold and are now rising, a strong buy signal. The MACD diff is negative and converging, confirming waning selling pressure. On the upside, a break above 1750 and then 50 DMA at 1750 would set the scene for a test of last week’s highs of 1776. On the downside, a break of support at 38.2% fib level at 1692 and then recent lows at 1664 would pave the way for more downside momentum. A long candle body with a break above 200 and 100 DMA points to strong market momentum, and we believe that prices will strengthen today.