by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER SUGAR
Wyckoff’s Market Rating: 5.0.
SEPTEMBER COFFEE
Wyckoff’s Market Rating: 4.0.
Source: VantagePoint Intermarket Analysis Software
September cocoa closed up $35 at $2,090 today. Prices closed near mid-range today and were supported by fresh speculator buying in a market that is still technically bullish. Today’s price action did give the bulls more technical momentum as a downside price gap on the daily chart was filled on the upside. The next upside price objective for the bulls is pushing prices above solid chart resistance at the contract high of $2,141. The next downside price objective for the bears is closing prices below solid support at the July low of $2,014. First resistance is seen at $2,100 and then at today’s high of $2,118. First support is seen at today’s low of $2,054 and then at this week’s low of $2,026.
Wyckoff’s Market Rating: 8.0.
DECEMBER COTTON
December cotton closed down 205 points at 65.70 cents today. Prices closed nearer the session low on profit-taking pressure from recent gains and more sharp losses in the grain futures. No serious chart damage occurred today and a downside correction was due. However, strong follow-through selling pressure on Wednesday would likely produce significant chart damage to begin to suggest a market top is in place. Prices are still in a two-month-old uptrend on the daily bar chart. Bulls still have the solid technical advantage. Bulls’ next upside objective is producing a close above solid resistance at the contract high of 68.80 cents. The next downside price objective for the bears is pushing prices below strong technical support at 65.00 cents. First resistance is seen at 67.00 cents and then at today’s high of 67.75 cents. First support is seen at today’s low of 65.43 cents and then at 65.00.
Wyckoff’s Market Rating: 7.0.
SEPTEMBER ORANGE JUICE
September orange juice closed down 150 points at $1.2650 today. Prices closed nearer the session low and closed at the lowest closing level since late June. FCOJ Bears are still in technical command, and also there is a lack of fresh bullish fundamental news that is allowing prices to drift lower. There are still no strong signs of a market bottom being close at hand. A six-month-old downtrend is in place from the early December high. A bearish symmetrical triangle pattern has formed on the daily bar chart. For the bulls to regain some fresh upside technical momentum, they would have to push and close prices above solid resistance at $1.3650 a pound. The next downside price objective for the OJ bears is pushing and closing prices below solid support at $1.2500. First resistance is seen at today’s high of $1.2820 and then at $1.3000. First support is seen at $1.2500 and then at $1.2400.
Wyckoff’s Market Rating: 1.5.
SEPTEMBER LUMBER
September lumber futures closed down $9.60 at $299.60 today. Prices closed near the session low and produced a bearish “outside day” down on the daily bar chart today and traded limit down at one point. Now, a triple top reversal pattern has formed on the daily bar chart and that’s an early bearish clue of a market top being in place. Strong follow-through selling pressure on Wednesday would solidify notions of a triple top. The next upside technical objective for the lumber bulls is closing prices above strong resistance at the July high of $313.70. The next downside price objective for the bears is pushing and closing prices below solid support at $295.00. First resistance is seen at $303.00 and then at $306.00. First support is seen at $297.50 and then at $295.00.
Wyckoff’s Market Rating: 6.0.
