by Jim Wyckoff, Senior Analyst TraderPlanet.com
MAY SUGAR
May sugar closed down 25 points at 11.44 cents yesterday. Prices closed nearer the session low yesterday and closed at a fresh three-month low close yesterday. A bearish pennant pattern has formed on the daily bar chart and yesterday’s price action could be the beginning of a downside breakout from that pattern. Serious near-term technical damage has been inflicted recently. A four-week-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to push and close prices above solid technical and psychological resistance at 12.00 cents. Bears’ next downside price objective is to push and close prices below psychological support at 11.00 cents. First resistance is seen at yesterday’s high of 11.77 cents and then at 11.90 cents. First support is seen at the March low of 11.25 cents and then at 11.00 cents.
Wyckoff’s Market Rating: 4.5
MAY COFFEE
May coffee closed up 225 points at 129.65 cents yesterday. Prices closed near the session high on short covering in a bear market. Bears still have the near-term technical advantage. Bulls’ next upside price objective is closing prices above solid technical resistance at 135.00 cents. The next downside price objective for the bears is closing prices below solid support at 125.00 cents a pound. First support is seen at yesterday’s low of 126.20 cents and then at 125.00 cents. First resistance is seen at 131.50 cents and then at 132.50 cents.
Wyckoff’s Market Rating: 4.0
MAY COCOA
May cocoa closed down $46 at $2,275 yesterday. Prices closed near the session low yesterday. Recent price action has formed a bear flag pattern on the daily bar chart, and yesterday’s downside price action could be the beginning of a downside “breakout” from that chart pattern. The next upside price objective for the bulls is to push and close prices above technical resistance at $2,400. The next downside price objective for the bears is closing prices below solid support at the March low of $2,252. First resistance is seen at $2,300 and then at yesterday’s high of $2,330. First support is seen at yesterday’s low of $2,262 and then at $2,252.
Wyckoff’s Market Rating: 4.5
MAY COTTON
May cotton closed up 104 points at 70.38 cents yesterday. Prices closed nearer the session high yesterday after hitting a fresh 3.5-month low early on. Short covering in a bear market was featured yesterday. Serious near-term chart damage has been inflicted recently. The next downside price objective for the bears is to produce a close below strong technical support at yesterday’s low of 67.31 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at 72.00 cents. First resistance is seen at 71.00 cents and then at yesterday’s high of 71.78 cents. First support is seen at 70.00 cents and then at 69.00 cents.
Wyckoff’s Market Rating: 4.5
MAY ORANGE JUICE
May orange juice closed up 285 points at $1.1250. Prices closed near mid-range on short covering in a bear market. Bears still have the near-term technical advantage. A 12- week-old downtrend is in place on the daily bar chart. The next upside technical objective for the FCOJ bulls is to produce a close above solid chart resistance at $1.1750. The next downside price objective for the OJ bears is pushing and closing prices below solid support at this week’s low of $1.0855. First resistance is seen at yesterday’s high of $1.1570 and then at $1.1750. First support is seen at $1.1000 and then at yesterday’s low of $1.0900.
Wyckoff’s Market Rating: 2.5
MAY LUMBER
May lumber futures closed down $5.10 at $217.00 yesterday. Prices closed near the session low and hit another fresh contract low yesterday. Bears are still in technical command. The next upside technical objective for the lumber bulls is pushing prices above solid resistance at this week’s high of $225.60. The next downside price objective for the bears is pushing and closing prices below solid support at $210.00. First resistance is seen at yesterday’s high of $221.50 and then at this week’s high of $225.60. First support is seen at the contract low of $217.00 and then at $215.00.
Wyckoff’s Market Rating: 1.0
