by Jim Wyckoff, Senior Analyst TraderPlanet.com

MARCH COFFEE

March coffee closed lower on Wednesday as it consolidated some of Monday’s rally but remains above the previous reaction high crossing at 13.15. 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 March extends this week’s rally, the 62% retracement level of the October-November decline crossing at 13.608 is the next upside target. Closes below the 20-day moving average crossing at 12.874 would signal that a short-term top has been posted.

MARCH COCOA

March cocoa closed lower on Tuesday as it consolidated some of Monday’s rally but remains above the 75% retracement level of this summer’s decline crossing at 20.73. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. If March extends this week’s rally, the 87% retracement level of this summer’s decline crossing at 21.23 is the next upside target. Closes below the 10-day moving average crossing at 20.36 would confirm that a short-term top has been posted.

MARCH SUGAR

March sugar closed sharply higher on Tuesday as it extended this week’s rally. The high-range close set the stage for a steady to higher opening on Wednesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November’s low, October’s high crossing at 10.50 is the next upside target. Closes below the 10-day moving average crossing at 9.89 would confirm that a short-term top has been posted.

MARCH COTTON

March cotton closed lower on Tuesday as it consolidated some of last week’s rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 65.18 are needed to confirm that a short-term low has been posted. If March renews last month’s decline, the 75% retracement level of the August-September rally crossing at 62.63 is the next downside target.