by Jim Wyckoff, Senior Analyst TraderPlanet.com
July sugar closed up 5 points at 9.43 cents today. Prices closed nearer the session high and closed at the highest closing level in six weeks today. Bulls have gained confidence that a near-term low is in place. Bears do still have the overall technical advantage. Bears’ next downside price objective is to close prices below psychological support at 9.00 cents. Bulls would gain some better upside technical momentum by producing a close back above resistance at this week’s high of 9.57 cents. First resistance is seen at today’s high of 9.48 cents and then at 9.57 cents. First support is seen at today’s low of 9.25 cents and then at 9.10 cents.
Wyckoff’s Market Rating: 3.5.
JULY COFFEE
July coffee closed up 15 points at 110.85 cents today in quieter trading. Prices closed near mid-range. Bulls need to show power very soon to hold the technical gains they’ve recently made. There are still ideas a market low is in place. The bulls’ next upside price objective is closing prices above solid resistance at last week’s high of 114.05 cents. The next downside price objective for the bears is closing prices back below solid support at 110.00 cents a pound. First support is seen at 110.00 cents and then at 109.00 cents. First resistance is seen at today’s high of 111.50 cents and then at this week’s high of 112.70 cents.
Wyckoff’s Market Rating: 4.0.
JULY COCOA
July cocoa closed down $31 at $1,872 today. Prices closed nearer the session low and hit a fresh three-week low on more follow-through selling from recent losses. Some fresh near-term chart damage occurred today. The bulls are fading and need to show power soon. The next upside price objective for the bulls is closing prices above solid chart resistance at the May high of $1,985. The next downside price objective for the bears is closing prices below solid support at $1,820. First resistance is seen at today’s high of 1,900 and then at this week’s high of $1,934. First support is seen at today’s low of $1,868 and then at $1,850.
Wyckoff’s Market Rating: 6.5.
Source: VantagePoint Intermarket Analysis Software
JULY COTTON
July cotton closed up 37 points at 50.40 cents today. Prices closed near mid-range and were supported by big gains in grain futures and on some speculative bargain-hunting buying. The bulls are hanging tough and would regain fresh upside technical momentum by producing a close above solid chart resistance at last week’s high of 51.20 cents. The next downside price objective for the bears is pushing prices below strong technical support at 48.25 cents. First resistance is seen at 51.20 cents and then at 51.50 cents. First support is seen at this week’s low of 49.90 cents and then at 49.25.
Wyckoff’s Market Rating: 3.5.
JULY ORANGE JUICE
July orange juice closed down 185 points at $1.5710 today. Prices closed near the session low today on fresh spec selling amid a lack of bullish fundamental news in the FCOJ market. A three-week-old downtrend is still in place from the early May high. For the bulls to regain fresh upside technical momentum, they would have to push and close prices above solid resistance at $1.6500 a pound. The next downside price objective for the OJ bears is pushing and closing prices below solid support at this week’s low of $1.5450. First resistance is seen at today’s high of $1.6000 and then at $1.6250. First support is seen at today’s low of $1.5590 and then at this week’s low of $1.5450.
Wyckoff’s Market Rating: 3.0.
JULY LUMBER
July lumber futures closed down $8.70 at $277.50 today, in wild trading session. But that’s lumber for you. Prices today hit a fresh 13-week high and then reversed course to close sharply lower, near the session low and scored a bearish “outside day” down on the daily bar chart. Bulls had gained some upside technical momentum recently to suggest a major market low is in place. But today’s price action was a setback for the bulls. They need to show more power very soon. The next upside technical objective for the lumber bulls is closing prices above solid technical resistance at today’s high of $293.00. The next downside price objective for the bears is pushing and closing prices below solid technical support at $264.00. First resistance is seen at $280.00 and then at $285.00. First support is seen at today’s low of $276.40 and then at $272.00.
Wyckoff’s Market Rating: 5.5.
