by Jim Wyckoff, Senior Analyst, TraderPlanet.com

MARCH SUGAR

March sugar closed down 29 points at 11.21 cents yesterday. Prices closed nearer the session low again yesterday and were pressured by bearish “outside markets”–a stronger U.S. dollar and sharply lower crude oil prices. Bears are still in technical control. Prices are in an eight-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to push and close prices above solid technical resistance at last week’s high of 12.09 cents. Bears’ next downside price objective is to push and close prices below solid technical support at last week’s low of 10.91 cents. First resistance is seen at yesterday’s high of 11.53 cents and then at this week’s high of 11.80 cents. First support is seen at yesterday’s low of 11.15 cents and then at 10.91 cents.

Wyckoff’s Market Rating: 2.5

DECEMBER COFFEE

December coffee closed down 40 points at 114.10 cents yesterday. Prices closed nearer the session low yesterday. The market was pressured by bearish “outside markets”–a stronger U.S. dollar and sharply lower crude oil prices. The recent pause, or sideways trading, in coffee is not bullish. Coffee bears still have the near-term technical advantage. Prices are still in an eight-week-old downtrend on the daily bar chart. Coffee bulls’ next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 121.10 cents. The next downside price objective for the bears is closing prices below solid technical support at the contract low of 109.35 cents a pound. First support is seen at yesterday’s low of 113.45 cents and then at last week’s low of 111.45 cents. First resistance is seen at yesterday’s high of 116.50 cents and then at this week’s high of 117.35 cents.

Wyckoff’s Market Rating: 2.0

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Source: VantagePoint Intermarket Analysis Software

DECEMBER COCOA

December cocoa closed down $46 at $2,039 yesterday. Prices closed near mid-range yesterday and hit another fresh 9.5-month low. Prices were pressured by bearish “outside markets”–a stronger U.S. dollar and sharply lower crude oil prices. Bears still have the near-term technical advantage. Prices are still in a 3.5-month-old downtrend on the daily bar chart. The next upside price objective for the cocoa bulls is to push and close prices above solid technical resistance at $2,200. The next downside price objective for the bears is pushing and closing prices below solid technical support at $2,000. First resistance is seen at yesterday’s high of $2,078 and then at $2,100. First support is seen at $2,000 and then at $1,975.

Wyckoff’s Market Rating: 1.5

DECEMBER COTTON

December cotton closed up 145 points at 50.51 cents yesterday. Prices closed near the session high yesterday on short covering in a bear market. The bears still have the solid near-term technical advantage in cotton. Prices are in a 7.5-month- old downtrend on the daily bar chart. The next downside price objective for the bears is to produce a close below strong technical support at the contract low of 45.66 cents. The next upside price objective for the bulls is to produce a close above solid technical resistance at this week’s high of 54.77 cents. First resistance is seen at 50.10 cents and then at 52.00 cents. First support is seen at 50.00 cents and then at 49.00 cents.

Wyckoff’s Market Rating: 2.5

JANUARY ORANGE JUICE

January orange juice closed up 75 points at $.8965. Prices closed near the session high yesterday and hit a fresh three- week high on short covering. Bulls are gaining confidence that a market low is in place. Bears do still have the overall near-term technical advantage as prices are still in a 3.5-month-old downtrend on the daily bar chart. The next downside technical objective for the FCOJ bears is to produce a close below solid technical support at the contract low of $.7540. The next upside price objective for the OJ bulls is pushing prices above solid technical resistance at $.9500. First resistance is seen at .9000 and then at $.9100. First support is seen at $.8750 and then at yesterday’s low of $.8490.

Wyckoff’s Market Rating: 2.5

NOVEMBER LUMBER

November lumber futures closed down the $10.00 limit at $189.50 yesterday. Prices gapped lower on the daily bar chart. Lumber bears still have the near-term technical advantage and gained fresh downside power yesterday. The next upside technical objective for the lumber bulls is pushing and closing prices above solid technical resistance at last week’s high of $200.50. The next downside price objective for the bears is pushing and closing prices below solid support at the contract low of $183.40. First resistance is seen at $192.50 and then at yesterday’s high of $196.00. First support is seen at $187.50 and then at $185.00.

Wyckoff’s Market Rating: 1.5