NY 2nd Month Sugar Futures
NY sugar edged higher on Friday as marginal appetite caused futures to test appetite for prices at 18.84, but the market closed below at 18.81. Stochastics are falling, but %K is seen tailing off near the oversold, confirming the possible change of momentum. The MACD diff is negative and diverging. To maintain positive momentum, prices need to close above the 18.84 level and then target 19.00 before 19.50 - last weeks’ highs. On the downside, the rejection of prices above 10 DMA at 18.93 could trigger losses back to the 40 DMA at 18.21 before targeting 18.00. Buying pressure subsided as prices struggled to break above the 18.84 level, and the volume declined in the last week’s trading session; however, the stochastics point to a possible change of momentum in the near term/ To confirm this, the futures need to break above the near term resistance.
Ldn 2nd Month Sugar Futures
Ldn sugar futures strengthened on Friday as protracted buying pressure triggered a close on the front foot at 520.50. The RSI is rising, while %K/%D is converging on the upside. Likewise, the MACD diff is positive and diverging. On the upside, finding appetite above the 520 level could trigger gains through 530 towards 531.50 – the recent highs. On the downside, a break below the 510 level could trigger losses back towards trend support of 501.12. A break below it would signal a strong selling pressure in the longer term. A longer candle body signals that the buying pressure is growing, and the break above 10 DMA confirms that a bullish outlook is on the horizon.
NY 2nd Month Coffee Futures
NY coffee futures gained ground on Friday as buying pressure prompted a test of 10 DMA 221.62 once again. The market closed at 220.05. The stochastics are rising out of the oversold, and the MACD diff is negative and converging, suggesting diminishing downside momentum in the near term. Prices have been testing 10 DMA for the last week, suggesting appetite above that level. The support at 210 has been robust, and a break below that level could break the recent upside momentum and set prices down to 38.2% fib level at 207.85 before 200. On the upside, a breach above the 10 DMA level at 221.62 would bring into play the recent firm resistance of 100 DMA at 231.93. The convergence of DMAs provides strong resistance for prices, but if the futures break above the 10 DMA, we could see prices edge higher.
Ldn 2nd Month Coffee Futures
Ldn coffee strengthened on Friday but struggled to break above 40 DMA, closing below at 2167. The stochastics are rising, with %K/%D is seen diverging on the upside, and %K is now overbought. The MACD diff is positive and diverging, pointing to rising buying momentum. To confirm the trend for rising prices, futures need to take out 40 DMA at 2173 before 2200. Likewise, on the downside, a 10 DMA support at 2108 has been formed, and a break below this level could trigger losses to support at 2078. If this level fails, then we would be looking for a start of a possible downtrend, down to 2000 and below. The indicators are pointing to further price strengthening in the near term, but 40 DMA resistance has proven to be robust in recent days, and longer lower wick after a doji candle points to a lack of appetite above these levels.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at 2583. This level held firm, and the future closed at 2568. The stochastics are falling, but %K is seen tailing off, and the MACD diff is negative and converging, signalling waning selling pressures. To confirm the outlook for higher prices, futures need to break above the resistance at 10 DMA at 2601; this could set the scene for futures to take out the 40 DMA at 2631. On the downside, the market needs to take out the trend support of 2505 and then 2436. If the futures break above the current resistance, we could see prices edge higher, confirming the indictors’ outlook.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures edged higher on Friday as intraday trading saw prices test resistance at 1750. The market closed at 1744. The RSI is rising, while %K/%D is falling but showing signs of convergence. The MACD diff is negative and converging, suggesting growing buying pressure. The indicators point to higher prices in the near term, and to confirm the rejection of the resistance, prices need to take out 1750. A break above this level towards 50 DMA at 1762 would confirm the strong upside momentum. Conversely, an appetite for prices below 1700 could trigger a test of support at 1692. Indicators point to upside momentum, and we expect prices to gain ground in the near term.