by Jim Wyckoff, Senior Analyst TraderPlanet.com

MARCH COFFEE

March coffee closed lower on Wednesday but remains above the 50% retracement level of the October-November decline crossing at 13.34. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 13.182 would confirm that a short-term top has been posted. If March extends this month’s rally, the 75% retracement level of the October-November decline crossing at 13.902 is the next upside target.

MARCH COCOA

March cocoa closed lower on Wednesday and below the 20-day moving average crossing at 20.58 confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near-term. If March extends today’s decline, the 38% retracement level of the August-December rally crossing at 20.03 is the next downside target. Closes above the 10-day moving average crossing at 20.94 would temper the near-term bearish outlook in the market.

MARCH SUGAR

March sugar posted a key reversal down on Wednesday as it consolidated some of this month’s rally but remains above July’s high crossing at 10.85. The low-range close set the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November’s low, the 25% retracement level of the 2006-2007 decline crossing at 11.37 is the next upside target. Closes below the 10-day moving average crossing at 10.65 would confirm that a short-term top has been posted.

MARCH COTTON

March cotton closed higher on Wednesday as it extended this month’s rally above the 50% retracement level of the September-December decline crossing at 66.70. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near-term. If March extends this month’s rally, the 62% retracement level of the September-December decline crossing at 67.58 is the next upside target. Closes below the 20-day moving average crossing at 64.99 would temper the near-term friendly outlook in the market.