by Jim Wyckoff, SeniorAnalyst TraderPlanet.com
OCTOBER SUGAR
October sugar closed up 25 points at 13.84 cents yesterday. Prices yesterday closed nearer the session high. Bulls have the slight near-term technical advantage. A bullish symmetrical triangle pattern has formed on the daily bar chart. A five-week-old uptrend line is also still in place on the daily bar chart. Bulls’ next upside price objective is to push and close prices above solid technical resistance at the July high of 14.35 cents. Bears’ next downside price objective is to push and close prices below solid technical support at 13.26 cents. First resistance is seen at yesterday’s high of 14.00 cents and then at 14.15 cents. First support is seen at 13.50 cents and then at yesterday’s low of 13.42 cents.
Wyckoff’s Market Rating: 6.0
SEPTEMBER COFFEE
September coffee closed down 240 points at 140.50 cents yesterday. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart yesterday. Recent price action has formed a bearing pennant pattern on the daily chart. Coffee bulls’ next upside price objective is pushing and closing prices above solid technical resistance at yesterday’s high of 144.70 cents. The next downside price objective for the bears is closing prices below solid support at last week’s low of 138.10 cents a pound. First support is seen at yesterday’s low of 139.50 cents and then at 138.10 cents. First resistance is seen at 142.50 cents and then at 143.90 cents.
Wyckoff’s Market Rating: 3.0
SEPTEMBER COCOA
September cocoa closed up $40 at $2,963 yesterday. Prices closed near mid-range on more short covering. Bulls did regain a bit of fresh upside near-term technical momentum yesterday. However, the bulls have more heavy lifting to do in the near term to regain solid power. Technical odds are still high that a major market top is in place. The next upside price objective for the cocoa bulls is to push and close prices above solid technical resistance at yesterday’s high of $3,015. The next downside price objective for the bears is closing prices below solid technical support at last week’s low of $2,857. First resistance is seen at $3,000 and then at $3,015. First support is seen at yesterday’s low of $2,926 and then at $2,900.
Wyckoff’s Market Rating: 6.5
DECEMBER COTTON
December cotton closed up 142 points at 73.45 cents yesterday. Prices closed near the session high on short covering and bargain-hunting buying. Prices scored a bullish “outside day” up on the daily bar chart. Still, serious chart damage has been inflicted in cotton recently. The next downside price objective for the bears is to produce a close below strong technical support at last week’s low of 70.86 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at last week’s high of 75.70 cents. First resistance is seen at yesterday’s high of 74.18 cents and then at 75.00 cents. First support is seen at 72.50 cents and then at yesterday’s low of 71.58 cents.
Wyckoff’s Market Rating: 3.5
SEPTEMBER ORANGE JUICE
September orange juice closed down 330 points at $1.2400. Prices closed near the session low yesterday, amid lessening storm threats for Florida citrus regions and amid sharp losses in crude oil prices. Bulls and bears are on a level near-term technical playing field. The next upside technical objective for the FCOJ bulls is to produce a close above chart resistance at $1.3000. The next downside price objective for the OJ bears is pushing and closing prices below solid support at last week’s low of $1.2065. First resistance is seen at $1.2500 and then at $1.2650. First support is seen at yesterday’s low of 1.2325 and then at $1.2250.
Wyckoff’s Market Rating: 5.0
SEPTEMBER LUMBER
September lumber futures closed down $5.10 at $248.70 yesterday. Prices closed near the session low and set a fresh contract low yesterday amid a dour assessment of the U.S. economy by Fed Chairman Bernanke. The bears have the solid overall near-term technical advantage and gained more power yesterday. The next upside technical objective for the lumber bulls is pushing and closing prices above solid technical resistance at this week’s high of $255.40. The next downside price objective for the bears is pushing and closing prices below solid support at $240.00. First resistance is seen at $250.00 and then at $252.10. First support is seen at yesterday’s contract low of $248.60 and then at $245.00.
Wyckoff’s Market Rating: 1.0
