by Jim Wyckoff, Senior Analyst TraderPlanet.com
SEPTEMBER COFFEE
September coffee closed lower on Monday as it extended last week’s trading range. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold and are turning bullish hinting that a short-term low might be in or is near. Closes above the 10-day moving average crossing at 113.75 are needed to confirm that a low has been posted. If September extends last month’s decline, the reaction low crossing at 107.95 is the next downside target.
SEPTEMBER COCOA
September cocoa closed lower on Monday as it consolidated some of last Friday’s rally but remains above broken resistance marked by April’s high crossing at 20.35. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. If September extends last week’s rally, weekly resistance crossing at 21.10 is the next upside target. Closes below the 10-day moving average crossing at 19.87 would confirm that a short-term top has been posted.
OCTOBER SUGAR
October sugar closed sharply lower on Monday and below the 20-day moving average crossing at 9.25 signaling that a short-term top has been posted. The low-range close set the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought and are turning bearish signaling that sideways to lower prices are possible near-term. If October renews June’s rally, the 50% retracement level of the March-June decline crossing at 10.06 is the next upside target.
OCTOBER COTTON
October cotton closed higher on Monday as it extends this spring’s rally. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above last July’s high crossing at 62.40 are needed to extend the rally off May’s low. Closes below the 20-day moving average crossing at 57.92 are needed to confirm that a short-term top has been posted.
