NY 2nd Month Sugar Futures
NY sugar futures held their nerve on Friday as intraday trading saw prices close above the 40 DMA at 20.59. The %K/%D has converged on the upside in the oversold, a strong buy signal. The MACD diff is negative and converging, suggesting a growing appetite for higher prices, but futures need to break above the 20.75 level to trigger the momentum. A break above this level towards resistance at 10 DMA at 20.97 would confirm the growing bullish momentum. Conversely, appetite for prices below the 40 DMA level could trigger a test of support at 20.00. A long-legged doji candle shows indecision about either direction; the length of the wicks also points to increased volatility during the day. The indicators point to a rise in prices in the near term, but futures need to close above the 10 DMA to confirm this.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged slightly higher on Friday as prices closed at 575. The %K/%D is now rising rapidly after sending a buy signal through upward convergence. Likewise, the MACD diff is negative and converging, suggesting a growing appetite for higher prices. Futures need to break above the 10 DMA level at 580.33 to trigger the momentum. A break above this level towards 600 would confirm the strong upside momentum. Conversely, appetite for prices below 574 could trigger a test of support of 560. A long-legged candle shows indecision about either direction as futures are being capped by strong support and resistance levels. The indicators point to a further rise in prices, but futures need to close above 10 DMA, the level they struggled to break above completely in the last couple of days.
NY 2nd Month Coffee Futures
NY coffee futures opened higher on Friday, but resistance at 255.30 caused futures to close lower on the day at 250.75. The stochastics have just crossed on the upside and are now rising marginally, a strong buy signal, and the MACD diff is negative and converging. On the downside, a break of the regression trend support level could trigger losses through 250, with the tertiary support at 240. On the upside, a break above the 10 DMA level at 251.80 could set the scene for bullish momentum towards 255.30. The candle closing lower on the day could be a sign that futures found robust resistance at the shorter-term DMAs; however, the indicators point to accelerating upside momentum. To confirm this, the robust level at 10 DMA has to be taken out first.
Ldn 2nd Month Coffee Futures
Ldn coffee futures held their nerve on Friday as intraday trading saw futures test appetite at 4664 once again, closing above it at 4678. The stochastics remain oversold, with %K/%D seen converging on the upside, and the MACD diff is negative and converging marginally on the upside, signalling waning selling pressures. On the downside, futures need to break below the support at 4664, which could set the scene for futures to take out the 4500 level. On the upside, the market needs to take out resistance of 10 DMA at 4774. Yesterday’s longer upper wick signals an appetite for higher prices. If futures break above the current resistance at 10 DMA, we could see prices edge higher, and the indicators point to a convergence on a downtrend.
NY 2nd Month Cocoa Futures
NY cocoa futures edged higher once again on Friday, breaking above the robust 6720 resistance level to close at 6868. The stochastics point to a continuation of momentum as they rise into the overbought territory. Likewise, the MACD diff is positive and diverging, suggesting we would see higher prices in the near term. To confirm this, the futures would need to break back above the 40 DMA level at 6912 before targeting the 100 DMA at 7228. Alternatively, if futures break back below the 6720 level, we could see prices edge lower to 6000. The three white crows’ formation confirms the appetite for higher prices, and we expect the futures’ upside momentum to continue in the near term.
Ldn 2nd Month Cocoa Futures
Ldn cocoa futures held their nerve on Friday as intraday trading caused the market to close at 5084. The stochastics are rising, with %K edging towards the overbought, and the MACD diff is positive and diverging, suggesting higher prices in the near term. To confirm the outlook for higher prices, futures need to break the 5000 level completely and then target 5359. On the downside, the rejection of prices above these levels could trigger losses back towards the 10 DMA at 4624. A break below this level and a test of 4489 would confirm the trend on the downside. Two narrow-bodied candles in the last couple of sessions point to market uncertainty, and the futures need to break out of current resistance to confirm the longer-term outlook.
