by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER SUGAR
Wyckoff’s Market Rating: 3.0.
DECEMBER COFFEE
December coffee closed up 30 points at 117.50 cents today. Prices closed near mid-range. Bears still have some downside technical momentum. A bear flag has formed on the daily bar chart recently. The next downside price objective for the bears is closing prices below solid support at the August low of 115.00 cents a pound. Bulls’ next upside price objective is closing prices above solid technical resistance at last week’s high of 120.75 cents. First support is seen at today’s low of 116.35 cents and then at 116.00 cents. First resistance is seen at today’s high of 118.30 cents and then at this week’s high of 119.05 cents.
Wyckoff’s Market Rating: 3.0.
Source: VantagePoint Intermarket Analysis Software
DECEMBER COCOA
December cocoa closed down $4 at $1,778 today. Prices closed near mid-range in quiet trading. Bears still have the near term technical advantage. Prices are still in a six-week-old downtrend on the daily bar chart. The next upside price objective for the bulls is pushing prices above solid chart resistance at $1,820. The next downside price objective for the bears is closing prices below solid support at this month’s low of $1,750. First resistance is seen at today’s high of $1,788 and then at $1,800. First support is seen at today’s low of $1,766 and then at this month’s low of $1,750.
Wyckoff’s Market Rating: 3.0.
DECEMBER COTTON
December cotton closed up 53 points at 57.50 cents today. Prices closed near the session high on short covering in a bear market. Bears still have some downside technical momentum on their side. A steep six-week-old downtrend is still in place on the daily bar chart. The next downside price objective for the bears is to produce a close below strong technical support at this week’s low of 56.70 cents. Bulls’ next upside objective is producing a close above solid resistance at 60.00 cents. First resistance is seen at 58.00 cents and then at this week’s high of 58.50 cents. First support is seen at 57.00 cents and then at 56.70.
Wyckoff’s Market Rating: 4.0.
NOVEMBER ORANGE JUICE
November orange juice closed up 10 points at $1.2200 today. Prices closed near the session high in quiet trading. Bears still have the technical advantage. The next upside technical objective for the bulls is to produce a close above solid chart resistance at last week’s high of $1.2600. The next downside price objective for the OJ bears is pushing and closing prices below solid support at the contract low of $1.1775. First resistance is seen at this week’s high of $1.2250 and then at $1.2400. First support is seen at this week’s low of $1.2000 and then at $1.1775.
Wyckoff’s Market Rating: 1.0.
SEPTEMBER LUMBER
September lumber futures closed down $2.50 at $257.80 today. Prices closed nearer the session low and hit another fresh three-month low today. The bulls are spooked by the credit crunch, the sub-prime mortgage woes and by recent poor housing and building data. Bears have downside technical momentum and gained more power today. The next upside technical objective for the lumber bulls is closing prices above strong resistance at $265.00. The next downside price objective for the bears is pushing and closing prices below solid support at the contract low of $253.60. First resistance is seen at $260.00 and then at today’s high of $262.50. First support is seen at today’s low of $255.80 and then at $253.60.
Wyckoff’s Market Rating: 1.0.
