NY 2nd Month Sugar Futures
NY sugar futures edged lower on Friday after prices failed to break above the 10 DMA at 20.48, prompting a close at 20.45. The stochastics are rising, with %K/%D edging out of the oversold, and the MACD diff is negative and converging, suggesting a reversal of moderate downside pressures seen in recent weeks. To confirm the bullish indicators and confirm prices above 20.00, futures need to take out resistance at 40 DMA at 20.78 and then target 21.00. On the downside, futures need to close below 20.00 and then test the 100 DMA at 19.84 in order to confirm the outlook for lower prices towards 19.21. We expect futures to strengthen marginally in the near term.
Ldn 2nd Month Sugar Futures
Ldn sugar futures edged lower on Friday after prices failed above 580.70 once again, prompting a close at 574.80. The stochastics are flat, with %K/%D fluctuating near the oversold territory, and the MACD diff is negative and converging, suggesting waning downside pressures. To confirm this, futures need to break above 580.70 before targeting 590 and 600, respectively. On the downside, the 40 DMA support needs to be broken below in order to confirm the outlook for lower prices. We expect prices to remain elevated in the near term.
NY 2nd Month Coffee Futures
NY sugar futures opened lower on Friday but managed to close higher day-on-day at 247.50 as they found support at 100 DMA. The stochastics are falling, but %K is seen tailing off on the upside near the oversold, which could suggest a change of momentum in the near term. The MACD diff is negative and converging. On the upside, futures need to break above the robust resistance levels of 10 and 40 DMAs at 252.48 and 253.66 to trigger the momentum. Prices would then need to take out the 260 level to confirm the longer-term outlook. Conversely, appetite for prices below the 100 DMA at 242.50 could trigger a test of support of 240. Friday’s candle shows rejection of lower prices and could point to an end of the bearish sentiment we have seen in the last couple of days. The indicators highlight a similar trend.
Ldn 2nd Month Coffee Futures
Ldn coffee futures opened lower on the day on Friday but managed to regain some of the strength to close at 44111. The stochastics continue to remain in the oversold territory but are showing signs of upside appetite; the MACD is negative and converging, highlighting the possible change of trend in the near term. To suggest a continuation of the momentum on the downside, futures need to break below the robust support level of 4338 completely before testing the 4200 level. Alternatively, support at current levels could trigger gains back to the 100 DMA at 4545 before the 10 DMA at 4571. A break of 40 DMA resistance at 4888 would confirm continued appetite for the longer-term upside trend.
NY 2nd Month Cocoa Futures
NY cocoa futures continued to break lower following the recent sell-off. However, the momentum on Friday slowed as the prices found support at 6000 and closed at 6310. The stochastics continue to weaken, entering the oversold. The MACD diff is negative and flat, suggesting slowing downside momentum. The candle formed a longer lower wick, a hammer formation, and could be a sign of a trend reversal in the near term. If this materialises, futures could break back above 6720 before the 40 DMA at 6666. On the downside, if the current support level at 6000 is broken below, the next level of support stands at 5824. We expect the recent downside momentum to slow in the near term and find support at current levels.
Ldn 2nd Month Cocoa Futures
Prices opened lower on Friday but regained some of the momentum, closing higher day-on-day at 4816. The stochastics are falling; however, the %K/%D is showing signs of tailing off on the upside, signalling a weakening bearish trend. The MACD diff is positive and has remained flat in recent days. Prices tested 4700; however, a close above this level suggests market indecisiveness below that level. On the upside, a break above 40 and 10 DMA at 4878 and 5018, respectively, could see the test of the 5359 level. We expect prices to remain supported above the 4489 level today.
