by Jim Wyckoff, Senior Analyst TraderPlanet.com
MARCH SUGAR
March sugar closed down 26 points at 11.29 cents yesterday. Prices closed near the session low and closed at a fresh three-week low close yesterday. Recent price action has produced a bearish V-Top reversal pattern on the daily bar chart. Bulls are fading badly. Bulls’ next upside price objective is to push and close prices above technical resistance at 11.80 cents. Bears’ next downside price objective is to push and close prices below solid technical support at 11.00 cents. First resistance is seen at 11.50 cents and then at yesterday’s high of 11.65 cents. First support is seen at this week’s low of 11.17 cents and then at 11.00 cents.
Wyckoff’s Market Rating: 5.5
MARCH COFFEE
March coffee closed down 305 points at 131.95 cents yesterday. Prices closed nearer the session low and closed at a fresh two-week low close yesterday. Bulls are fading as the market has rolled over and negated a 2.5-month old uptrend on the daily bar chart. Bulls’ next upside price objective is closing prices above solid technical resistance at yesterday’s and this week’s high of 135.30 cents. The next downside price objective for the bears is closing prices below solid support at this week’s low of 129.70 cents a pound. First support is seen at yesterday’s low of 130.80 cents and then at 129.70 cents. First resistance is seen at 133.00 cents and then at 134.00 cents.
Wyckoff’s Market Rating: 5.0
MARCH COCOA
March cocoa closed up $5 at $2,136 yesterday. Prices closed near mid-range yesterday. Cocoa bulls still have the overall near-term technical advantage as a three-month-old uptrend is still in place on the daily bar chart. However, general price weakness across the raw commodity futures spectrum will limit the upside in cocoa. The next upside price objective for the bulls is to push and close prices above solid technical resistance at the contract high of $2,237. The next downside price objective for the bears is closing prices below solid support at $2,022. First resistance is seen at yesterday’s high of $2,160 and then at $2,175. First support is seen at yesterday’s low of $2,111 and then at $2,100.
Wyckoff’s Market Rating: 7.0
MARCH COTTON
March cotton closed down the 300-point limit at 66.83 cents yesterday. Now, serious chart damage has occurred to suggest a market top is in place and that more downside potential is forthcoming. Recession fears have hit the cotton market, too. Bulls’ next upside price objective is to push prices above solid technical resistance at 68.00 cents. The next downside price objective for the bears is to produce a close below strong technical support at 66.66 cents. First resistance is seen at 67.00 cents and then at 67.50 cents. First support is seen at 66.66 cents and then at 66.00 cents.
Wyckoff’s Market Rating: 5.0
MARCH ORANGE JUICE
March orange juice closed up 55 points at $1.3405 yesterday. Prices closed near mid-range again yesterday. FCOJ won’t likely see much upside amid the general raw commodity market weakness, at present. The next upside technical objective for the FCOJ bulls is to produce a close above solid chart resistance at last week’s high of $1.4085. The next downside price objective for the OJ bears is pushing and closing prices below solid support at this month’s low of $1.3120. First resistance is seen at $1.3500 and then at yesterday’s high of $1.3650. First support is seen at yesterday’s low of $1.3250 and then at $1.3120.
Wyckoff’s Market Rating: 4.5
MARCH LUMBER
March lumber futures closed down $2.30 at $219.60 yesterday. Prices closed near the session low and hit another fresh contract low yesterday. The bears still have the solid overall near-term technical advantage, amid U.S. economic recession fears. The next upside technical objective for the lumber bulls is pushing prices above resistance at this week’s high of $226.00. 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 $223.00 and then at this week’s high of $226.00. First support is seen at yesterday’s contract low of $219.00 and then at $217.50.
Wyckoff’s Market Rating: 1.0
