by Jim Wyckoff, Senior Analyst TraderPlanet.com
SEPTEMBER COFFEE
September coffee posted an inside day with a lower close on Tuesday as it consolidated some of this month’s rally but remains above broken resistance marked by July’s high crossing at 116.20. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If September extends this week’s rally, June’s high crossing at 121.15 is the next upside target. Closes below the 20-day moving average crossing at 113.77 would confirm that a short-term top has been posted.
SEPTEMBER COCOA
September cocoa closed sharply lower on Tuesday as it extends the decline off July’s high and tested the 50% retracement level of this year’s rally crossing at 18.23. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If September extends the decline, the 62% retracement level of this year’s rally crossing at 17.47 is the next downside target. Closes above the 10-day moving average crossing at 19.28 are needed to confirm that a short-term low has been posted.
Source: VantagePoint Intermarket Analysis Software
OCTOBER SUGAR
October sugar closed lower on Tuesday as it extended this week’s decline. The low-range close set the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If October extends the decline off last week’s high, the 50% retracement level crossing at 9.62 is the next downside target. Closes above the 10-day moving average crossing at 10.12 would signal that a short-term low has been posted.
OCTOBER COTTON
October cotton closed lower on Tuesday extending Monday’s decline below the 10-day moving average crossing at 62.02. Position squaring ahead of Friday’s monthly supply-demand report triggered today’s sell off. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are turning neutral hinting that sideways to lower prices are possible near-term. If October renews the decline off July’s high, the 50% retracement level of the May-July rally crossing at 58.28 is the next downside target. Closes above the 20-day moving average crossing at 62.88 are needed to confirm that a short-term low has been posted.
