by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER SUGAR
October sugar closed up 47 points at 13.89 cents yesterday. Prices yesterday closed nearer the session high as trading has become choppy at higher price levels, which does favor the bears. However, the bears do have the near- term technical advantage and gained more momentum yesterday. Bulls’ next upside price objective is to push and close prices above solid technical resistance at last week’s high of 14.69 cents. Bears’ next downside price objective is to push and close prices below solid technical support at 13.00 cents. First resistance is seen at yesterday’s high of 14.03 cents and then at the July high of 14.35 cents. First support is seen at 13.75 cents and then at 13.50 cents.
Wyckoff’s Market Rating: 6.5
SEPTEMBER COFFEE
September coffee closed up 345 points at 140.30 cents yesterday. Prices closed nearer the session high yesterday and hit a fresh three-week high. Short covering was featured yesterday. Coffee bulls and bears are back on a level near-term technical playing field. Coffee bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 145.00 cents. The next downside price objective for the bears is closing prices below solid support at the July low of 133.95 cents a pound. First support is seen at 139.00 cents and then at 138.00 cents. First resistance is seen at yesterday’s high of 142.25 cents and then at the May high of 144.30 cents.
Wyckoff’s Market Rating: 5.0
SEPTEMBER COCOA
September cocoa closed down $71 at $2,712 yesterday. Prices closed nearer the session low yesterday and hit another fresh nine-week low amid bearish “outside markets”–sharply lower crude oil pricesand a stronger U.S. dollar again yesterday. Serious near term chart damage has been inflicted this week. Prices are in a five-week-old downtrend on the daily bar chart. The next upside price objective for the cocoa bulls is to push and close prices above solid technical resistance at $2,865. The next downside price objective for the bears is closing prices below solid technical support at $2,600. First resistance is seen at $2,750 and then at yesterday’s high of $2,776. First support is seen at yesterday’s low of $2,693 and then at $2,650.
Wyckoff’s Market Rating: 3.5
DECEMBER COTTON
December cotton closed down 10 points at 69.03 cents yesterday. Prices closed nearer the session low and hit another fresh 11-month low yesterday. Serious near-term chart damage has been inflicted recently. Bears have the solid overall near-term technical advantage. The next downside price objective for the bears is to produce a close below strong technical support at 65.00 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at this week’s high of 72.38 cents. First resistance is seen at 70.00 cents and then at 71.00 cents. First support is seen at yesterday’s low of 68.20 cents and then at 67.50 cents.
Wyckoff’s Market Rating: 2.5
SEPTEMBER ORANGE JUICE
September orange juice closed down 275 points at $.9815. Prices closed near mid-range and hit another fresh contract low yesterday. Serious chart damage has been inflicted recently. Bears have the solid near-term technical advantage. However, the market is still short-term oversold, technically, and due for a corrective bounce very soon. The next upside technical objective for the FCOJ bulls is to produce a close above chart resistance at $1.0500. The next downside price objective for the OJ bears is pushing and closing prices below solid technical support at yesterday’s contract low of $.9610. First resistance is seen at 1.0000 and then at yesterday’s high of $1.0160. First support is seen at yesterday’s contract low of $.9610 and then at $.9500.
Wyckoff’s Market Rating: 1.0
SEPTEMBER LUMBER
September lumber futures closed up $2.30 at $261.30 yesterday. Prices closed nearer the session high and hit a fresh four- week high yesterday. Short covering and bargain-hunting buying were featured. The bulls have gained some fresh upside technical momentum recently. The bears do still have the overall near-term technical advantage. The next upside technical objective for the lumber bulls is pushing and closing prices above solid technical resistance at the July high of $262.80. The next downside price objective for the bears is pushing and closing prices below solid support at $252.00. First resistance is seen at $262.80 and then at $265.00. First support is seen at $260.00 and then at $258.00.
Wyckoff’s Market Rating: 3.5
