by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER SUGAR
October sugar closed down 19 points at 12.68 cents yesterday. Prices closed nearer the session low again yesterday on more profit taking. Weakercrude oil pricesdid limit buying interest in sugar yesterday. Sugar bulls are fading and need to show power soon. Bulls’ next upside price objective is to push and close prices above solid technical resistance at this week’s high of 13.28 cents. Bears’ next downside price objective is to push and close prices below solid technical support at 12.50 cents. First resistance is seen at yesterday’s high of 13.05 cents and then at 13.28 cents. First support is seen at yesterday’s low of 12.61 cents and then at 12.50 cents.
Wyckoff’s Market Rating: 5.0
SEPTEMBER COFFEE
September coffee closed up 175 points at 148.20 cents yesterday. Prices closed near mid-range and hit a fresh 13-week high yesterday. Recent price action has seen a bullish upside “breakout” from a sidewaystrading range. Bulls have fresh upside technical momentum on their side and are looking for more on the upside in the near term. Coffee bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 155.00 cents. The next downside price objective for the bears is closing prices below solid support at 142.50 cents a pound. First support is seen at yesterday’s low of 146.25 cents and then at 145.00 cents. First resistance is seen at 150.00 cents and then at yesterday’s high of 151.10 cents.
Wyckoff’s Market Rating: 6.5
SEPTEMBER COCOA
September cocoa closed up $23 at $3,142 yesterday. Prices closed near mid-range yesterday and hit another fresh contract high and a fresh 28-year high. Bulls still have the solid overall technical advantage amid no early technical clues that a market top is close at hand. However, the market is way short-term overbought and due for a decent corrective pullback very soon. The next upside price objective for the cocoa bulls is to push and close prices above resistance at $3,200. The next downside price objective for the bears is closing prices below solid technical support at $3,040, which would fill on the downside an upside price gap. First resistance is seen at yesterday’s contract high of $3,157 and then at $3,175. First support is seen at yesterday’s low of $3,130 and then at $3,100.
Wyckoff’s Market Rating: 9.5
DECEMBER COTTON
December cotton closed up 82 points at 80.22 cents yesterday. Prices closed nearer the session low yesterday. Cotton will continue to look to the grain markets, crude oil and the U.S. dollar for direction. The next downside price objective for the bears is to produce a close below strong technical support at last week’s low of 78.45 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at 82.30 cents. First resistance is seen at yesterday’s high of 81.36 cents and then at 82.00 cents. First support is seen at yesterday’s low of 79.60 cents and then at this week’s low of 78.80 cents.
Wyckoff’s Market Rating: 5.5
SEPTEMBER ORANGE JUICE
September orange juice closed up 20 points at $1.1325. Prices closed nearer the session low in quiet trading yesterday. Bears still have the overall technical advantage. The next upside technical objective for the FCOJ bulls is to produce a close above chart resistance at $1.1575. The next downside price objective for the OJ bears is pushing and closing prices below solid support at last week’s low of $1.1000. First resistance is seen at $1.1400 and then at $1.1500. First support is seen at this week’s low of 1.1195 and then at $1.1100.
Wyckoff’s Market Rating: 2.0
JULY LUMBER
July lumber futures closed down $7.00 at $242.50 yesterday. Prices closed near the session low. Bulls faded quickly yesterday. The next upside technical objective for the lumber bulls is pushing and closing prices above solid resistance at this week’s high of $250.00. The next downside price objective for the bears is pushing and closing prices below solid support at the June low of $239.10. First resistance is seen at $245.00 and then at $247.00. First support is seen at $242.00 and then at $241.00.
Wyckoff’s Market Rating: 3.0
