NY 2nd Month Sugar Futures
NY sugar futures rallied on Friday as buying pressure triggered a close on the front foot at 20.27. The stochastics are rising in the overbought, as the MACD diff is positive and diverging, signalling continued buying pressures before a change of momentum in the near term. This suggests we could see higher prices in the near term towards the resistance of 20.38, but the market needs to completely take out immediate resistance at 20.00 beforehand. On the downside, trend support around 19.50 is robust, and if this level does not hold firm, we could see prices retreat back through the 19.00 to 40 DMA at 18.74. The 40 DMA has crossed above the 100 DMA level, a strong buy signal. Likewise, a long candle body with short wicks coupled with strong volumes on the day points to an appetite for higher prices; however, with the stochastics being overbought, we expect the trend to change in the near term. If futures find resistance at 20.38 today, we could see the reversal of a recent trend.
Ldn 2nd Month Sugar Futures
Ldn sugar futures surged on Friday as buying pressure triggered a close on the front foot at 551.50 – the February 2017 highs. The stochastics are rising, with RSI about to enter the overbought, as the MACD diff just crossed on the upside, signalling a buy trend in the near term. This points to potentially higher prices in the near term through 560 to 564.50, confirming the ascending triangle. Alternatively, trend support around 536 is robust, and if the futures break below this level, we could see prices retreat back through the 10 DMA at 534.92 before 530. Long candle body points to the appetite for higher prices, however, if the volumes continue to diminish as we saw on Friday, this could trigger a trend reversal on the downside.
NY 2nd Month Coffee Futures
NY coffee futures strengthened on Friday as protracted buying pressure prompted a test of the 40 DMA level once again to close at 231.55. The stochastics are rising in the overbought, highlighting the recent buying pressures. The MACD diff is positive and diverging. To confirm another bullish candle, futures need to close completely above 40 DMA at 230.16 and then target the 100 DMA at 234.11. On the downside, the break below 10 DMA at 225.45 could set the scene for lower prices towards the support of 221. The market struggled to break out of the support and resistance DMAs in recent sessions, the bullish engulfing pattern suggests an appetite for higher prices. To confirm this, the resistance at 40 DMA has to be broken above in the near term.
Ldn 2nd Month Coffee Futures
Ldn coffee futures edged higher on Friday as intraday trading saw prices test resistance at 2104. The market closed at 2096. The RSI is rising, and %K/%D is falling but shows signs of convergence, as the %K is seen tailing off on the upside out of the oversold. The MACD diff is negative and converging, pointing to a change of trend in the near term. The indicators point to waning bearish momentum and to confirm the rejection of the resistance, prices need to take out 2104. A break above this level towards the resistance of 10 DMA at 2114 would confirm the growing upside momentum. Conversely, an appetite for prices below 2078 could trigger a test of 2019. A short candle body after three strong bearish candles suggests uncertainty about lower prices. We believe that prices will see a stronger case for upside momentum in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures jumped higher on Friday as trading saw prices close above 2667 at 2674. The stochastics are seen converging on the upside, and the MACD diff just turned positive a strong buy signal. A break above 2700 could set the scene for bullish momentum towards 2726, but futures struggled above the near term resistance in recent weeks. Alternatively, a break of the 10 DMA at 2643 could trigger losses through 40 DMA at 2625, with the tertiary level at 2600. The candle with a longer upper wick around robust resistance could be a sign of this level holding firm once again, however, the indicators point to strong upside momentum in the near term. If resistance at 2700 is broken, this could set the case for strong upside momentum.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures surged on Friday, breaking above resistance at 1800 and closing at 1822. The stochastics are rising, with %K/%D just converging on the upside, and the MACD diff is positive and diverging, sending a buy signal. The reaffirmation of support at 1800 could set the scene for higher prices back to test 1837 before 1861 – the February highs. This would confirm the three white soldiers' formation and the outlook for higher prices. On the downside, futures need to break below the support of 50 DMA at 1765 in order to end the recent sessions’ bull trend. Then, the 50, 100 and 200 DMAs provide robust support levels. The break above the robust resistance of 1800 could point to further upside momentum in the near term.
