NY 2nd Month Sugar Futures
NY sugar futures edged marginally higher on Friday as trading saw prices close at 17.83. The stochastics just entered the oversold territory, and the MACD diff is negative but does not clearly point to a change in direction as it remained flat day-on-day. A break of 17.62 could trigger losses through 17.48, with the tertiary level at 17.20. On the upside, a break above 10 DMA at 17.88 could set the scene for bullish momentum towards 40 DMA at 18.06. After the last session’s market indecisiveness – the spinning top formation – as prices struggle above 10 DMA but also below the near-term support, we could see further sideways momentum in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar strengthened on Friday as protracted buying pressure triggered a close on the front foot at 539. The stochastics are rising, with %K/%D diverging on the upside into the overbought. The MACD diff is positive but has remained flat. A longer bullish candle body with a long lower wick suggests growing buying pressures; this could set the scene for higher prices to break above the resistance at 540. This would confirm the trend for rising prices, up to 547.90. On the downside, a breach of support at 10 DMA at 531.88 would strengthen the bearish momentum. This could also trigger losses towards the 100 DMA at 526.97. Indicators point to higher prices, however, the futures need to break above the 540 level completely, the level the futures have not breached since July.
NY 2nd Month Coffee Futures
NY coffee futures gained ground on Friday as buying pressure triggered a close on the front foot at 228.50. The stochastics are rising, with %K/%D converging on the upside, as the MACD diff is negative and converging, signalling a buy trend in the near term. This suggests we could see higher prices in the near term towards 240, but the market needs to take out immediate resistance at 10 DMA at 231.07 beforehand. On the downside, trend support around 223.44 is robust, and if this level does not hold firm, we could see prices retreat back through the 100 DMA at 220.93 before 40 DMA at 219.01. Long upper wick on Friday points to a lack of appetite for higher prices, however, futures need to take out 10 DMA in order to confirm the indicators’ outlook on the upside.
Ldn 2nd Month Coffee Futures
Ldn coffee futures opened higher on Friday, but resistance at 2281 caused futures to close lower on the day at 2264. The stochastics are seen diverging on the upside, with the %K/%D now rising higher in the neutral territory, and the MACD diff is negative and converging. A break of the 10 DMA level at 2249 could trigger losses through 2215, with the tertiary level at 2200. On the upside, a break above 2281 completely could set the scene for bullish momentum towards 2300. The longer upper and lower wick on both sides point to market indecisiveness about higher prices, however, the indicators point to further upside momentum in the near term.
NY 2nd Month Cocoa Futures
NY cocoa futures held their nerve on Friday as intraday trading saw futures test appetite at the moving averages. This level held firm, and the future closed at 2360. The stochastics are rising, with %K/%D converging on the upside, and the MACD diff is now seen converging on the upside, signalling growing buying pressures. To confirm the outlook for higher prices, futures need to break above the resistance levels at 10 and 40 DMA at 2384, which could set the scene for futures to take out 2400. On the downside, the market needs to take out support at 2314 and then support at 2300. The candle with a longer upper wick on Friday suggests that the market still lacks the appetite for higher prices in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures gained ground on Friday as support at 1837 held firm urging the futures to close at 1854. The stochastics are falling, with the %K/%D falling out of the overbought, as the MACD diff is negative and diverging, suggesting growing downside momentum. This suggests we could see further declines in the near term. To confirm this, prices need to break below firm support at 1837. If the prices break through this level, we could see prices retreat back through 1800. On the upside, a break above 1884 and 1900 could signal further upside potential. The bullish candle with a long body and long upper and lower wicks points to the uncertainty of breaking out of the current support and resistance.