NY 2nd Month Sugar Futures
NY sugar futures weakened marginally on Friday after piercing the support level of 10 DMA. The market closed lower at 19.19. The stochastics are falling, with %K/%D just converging on the downside, out of the overbought. Likewise, the MACD diff just converged on the downside, pointing to a strong sell signal across the indicators. To confirm this, futures need to break below the support of 19.00, down to 18.84. Indeed, the 10 DMA support level has been robust in the last couple of sessions; a break below this level suggests growing conviction on the downside. On the upside, reaffirmation of support at 19.11 could set the scene for higher prices back to breach the 10 DMA level at 19.25 up to 19.50, confirming an inverse hammer formation. The indicators confirm growing selling pressures, and a break of 10 DMA support suggests growing downside conviction in the near term.
Ldn 2nd Month Sugar Futures
Prices weakened on Friday as moderate selling pressure triggered a close at 528.30. The MACD diff is negative and diverging. The stochastics are falling, with the %K/%D falling out of the overbought territory. The RSI is also falling, and the inside day yesterday suggests a continuation of the recent trend on the downside. Dips in the market have been well bid, highlighted by elevated volumes, and this could point to further downside momentum. To confirm that, support at 520 needs to be broken before 510.70 and 40 DMA at 506.36. Conversely, gains back above 10 DMA at 533.43 could trigger gains to 540. The indicators point to further downside momentum, but candles need to break below the near term support to confirm this.
NY 2nd Month Coffee Futures
NY coffee prices gained ground on Friday, and appetite for prices above trend resistance, triggering a close at 228.45. The stochastics favour the upside, with the %K stochastic about to enter the overbought territory. The MACD diff is positive and diverging, pointing to an improved outlook. The RSI is rising, and Friday's candle suggests we could see prices challenge 40 and 100 DMAs at 233 in the near term. In the medium term, futures need to hold above 240 and then the level at 244.75. On the downside, a break below the 10 DMA support level at 222.54 could trigger losses back to 220 and 212.60. Three white soldiers' formation in the previous sessions confirms the outlook or higher prices, however, a break of 40 DMA below 100 suggests growing downside momentum. We anticipate prices to improve today but resistance at 40 and 100 to cap prices on the upside.
Ldn 2nd Month Coffee Futures
Ldn coffee futures weakened on Friday as futures failed into the resistance at 40 DMA and closed at 2130. The stochastics continue to decline, and the MACD diff is positive and converging. A break below 2100 would confirm the bearish engulfing candle. This may pave the way for lower prices to 2078, with the tertiary level at 2000. Conversely, the reaffirmation of support above 2104 would suggest higher prices and a close above 40 DMA at 2160, setting the scene for higher prices towards 2200. Friday's candle body and the indicators suggest an appetite for lower prices, but robust support at 2100 has to be broken first to confirm this.
NY 2nd Month Cocoa Futures
NY cocoa futures weakened on Friday as futures failed into the resistance at 2700 and closed at 641. The stochastics have converged and now falling out of the overbought, a strong sell signal. The MACD diff is positive and converging, pointing to a waning buying pressure. A break below 10 DMA at 2636 would confirm the outlook for lower prices. This may pave the way for 2600, with the tertiary level at 200 DMA at 2560. Conversely, appetite above 2700 would suggest higher prices and a close above 2726, setting the scene for higher prices towards 2750. Friday's candle body being below Thursday's suggests an appetite for lower prices, and the indicators are pointing to a further fall in prices in the near term.
Ldn 2nd Month Cocoa Futures
London cocoa futures buckled on Friday as protracted selling pressure triggered a close at 1776. The stochastics have converged on the downside, and the MACD diff is positive and converging, which could suggest further downside momentum. To confirm this, a break of the support at the 61.8% fib level at 1767 could trigger losses through 50 DMA at 1761, with the secondary level at 100 DMA at 1740. On the upside, a break above 1800 could set the scene for a test of 76.4% fib level at 1813. We believe that the momentum will favour the downside, and after Friday's long candle body, we expect prices to soften today.