by Jim Wyckoff. Senior Analyst TraderPlanet.com

MAY COFFEE

May coffee closed higher due to short covering on Tuesday as it consolidates some of this month’s decline. The high-range close sets the stage for a steady to higher opening on Wednesday. However, stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If May extends this month’s decline, the 50% retracement level of the May-February rally crossing at 14.452 is the next downside target. Closes above the 10-day moving average crossing at 16.048 would confirm that a short-term low has been posted.

MAY COCOA

May cocoa closed higher on Tuesday and above the 10-day moving average crossing at 27.60 as it consolidated some of the decline off last week’s high. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are neutral to bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 26.41 would confirm that a short-term top has been posted. If May renews this winter’s rally, weekly resistance crossing at 30.00 is the next upside target.

MAY SUGAR

May sugar closed higher on Tuesday as it consolidated some of this month’s decline. The high-range close set the stage for a steady to higher opening on Wednesday. However, stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If May extends this month’s decline, the 50% retracement level of the August-February rally crossing at 12.24 is the next downside target. Closes above the 10-day moving average crossing at 14.12 would signal that a short-term low has been posted.

MAY COTTON

May cotton closed limit up on Tuesday and filled Monday’s gap crossing at 81.28 signaling that selling has been exhausted. Today’s supply-demand report showed that exports were cut by 1.2 million bales to 14.50 million bales. Ending stocks were raised from 8.2 to 9.4 million bales. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If May extends this month’s decline, the February 22nd gap crossing at 75.12 is the next downside target. Closes above the 10-day moving average crossing at 82.54 would confirm that a short-term low has been posted.