by Jim Wyckoff, Senior Analyst TraderPlanet.com
JULY SUGAR
July sugar closed up 6 points at 10.13 cents yesterday. Prices closed near the session low. Short covering in a bear market was featured yesterday. Bears still have solid downside technical power, amid no strong technical clues of a market low being in place. Sugar prices are still in a three-month-old downtrend on the daily bar chart. Bears’ next downside price objective is to push and close prices below strong technical support at 9.50 cents. Bulls’ next upside price objective is to push and close prices above solid technical resistance at 10.50 cents. First resistance is seen at 10.25 cents and then at yesterday’s high of 10.43 cents. First support is seen at yesterday’s low of 10.04 cents and then at this week’s low of 9.93 cents.
Wyckoff’s Market Rating: 2.5
JULY COFFEE
July coffee closed up 360 points at 135.60 cents yesterday. Prices closed nearer the session high after hitting a fresh three-week low early on yesterday. Prices did score a bullish “outside day” up on the daily bar chart yesterday. Trading has turned choppy and prices are still trapped in a bigger trading range, bound by the April high of 142.85 cents and the March low of 128.40 cents. The direction in which prices “break out” of the bigger trading range will very likely be the direction of the next significant price trend in this market. Coffee bulls’ next upside price objective is closing prices above solid technical resistance at 140.00 cents. The next downside price objective for the bears is closing prices below solid support at yesterday’s low of 131.35 cents a pound. First support is seen at 134.00 cents and then at 132.50 cents. First resistance is seen at yesterday’s high of 136.25 cents and then at 138.00 cents.
Wyckoff’s Market Rating: 5.0
JULY COCOA
July cocoa closed up $35 at $2,625 yesterday. Prices closed near the session high yesterday. Prices are in a five-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is to push and close prices above technical resistance at last week’s high of $2,705. The next downside price objective for the bears is closing prices below solid support at last week’s low of $2,539. First resistance is seen at yesterday’s high of $2,626 and then at $2,640. First support is seen at $2,600 and then at $2,575.
Wyckoff’s Market Rating: 5.5
JULY COTTON
July cotton closed up 62 points at 66.81 cents yesterday. Prices closed nearer the session high and did hit a fresh nine-month low early on yesterday. Short covering in a bear market was seen yesterday. Serious near-term chart damage has been inflicted recently. Bears still have the near-term technical advantage amid no solid technical clues that a market low is close at hand. An 11-week-old downtrend is still in place on the daily bar chart. The next downside price objective for the bears is to produce a close below strong technical support at the August 2007 low of 62.30 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at 68.52 cents. First resistance is seen at 67.50 cents and then at 68.00 cents. First support is seen at 66.00 cents and then at yesterday’s low of 65.11 cents.
Wyckoff’s Market Rating: 2.5
JULY ORANGE JUICE
July orange juice closed down 150 points at $1.0660. Prices closed near mid-range. Bears still have the solid technical advantage as prices hover near the contract low. The next upside technical objective for the FCOJ bulls is to produce a close above chart resistance at $1.1250. The next downside price objective for the OJ bears is pushing and closing prices below solid support at the contract low of $1.0530. First resistance is seen at yesterday’s high of $1.0900 and then at last week’s high of $1.1100. First support is seen at $1.0530 and then at $1.0400.
Wyckoff’s Market Rating: 1.0
JULY LUMBER
July lumber futures closed down $3.00 at $250.00 yesterday. Prices closed near the session low and scored a bearish “outside day” down on the daily bar chart yesterday. Recent price action has produced a bull flag pattern on the daily bar chart. The next upside technical objective for the lumber bulls is pushing and closing prices above solid resistance at last week’s high of $257.50. The next downside price objective for the bears is pushing and closing prices below solid support $245.00. First resistance is seen at $252.50 and then at yesterday’s high of $255.10. First support is seen at yesterday’s low of $249.30 and then at $247.50.
Wyckoff’s Market Rating: 3.5
