by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER SUGAR
Wyckoff’s Market Rating: 2.5.
SEPTEMBER COFFEE
Wyckoff’s Market Rating: 5.5.
Source: VantagePoint Intermarket Analysis Software
SEPTEMBER COCOA
September cocoa closed down $26 at $1,924 today. Prices closed nearer the session low again today on more profit-taking pressure after hitting a fresh four-week high Tuesday. Bulls are fading and need to show fresh power soon. The next upside price objective for the bulls is closing prices above solid chart resistance at this week’s high of $1,973. The next downside price objective for the bears is closing prices below solid support at $1,900. First resistance is seen at today’s high of 1,950 and then at $1,973. First support is seen at today’s low of $1,911 and then at $1,900.
Wyckoff’s Market Rating: 6.5.
DECEMBER COTTON
December cotton closed up 232 points at 61.42 cents today in active trading. Prices closed nearer the session high and shot to a fresh 9.5-month high on fresh fund and speculator buying. Prices traded up the 300-point limit at one time. Bulls now have solid upside technical momentum, but the market is also short-term technically overbought. Prices are in a steep six-week-old uptrend on the daily bar chart. Bulls’ next upside objective is producing a close above solid resistance at the August 2006 high of 63.50 cents. The next downside price objective for the bears is pushing prices below strong technical support at 60.00 cents. First resistance is seen at today’s high of 62.10 cents and then at 62.50 cents. First support is seen at 61.00 cents and then at 60.70.
Wyckoff’s Market Rating: 8.0.
SEPTEMBER ORANGE JUICE
September orange juice closed down 370 points at $1.3295 today. Prices closed nearer the session low and hit a fresh 14-month low today. Ideas of a better Florida orange crop this year and recent beneficial rainfall in Florida are also bearish fundamentals that will continue to limit buying interest in FCOJ. Bears are still in strong technical command and gained more power today. There are no signs of a market bottom being close at hand. A six-month-old downtrend is in place from the early December high. For the bulls to regain some fresh upside technical momentum, they would have to push and close prices above solid resistance at $1.4500 a pound. The next downside price objective for the OJ bears is pushing and closing prices below solid support at $1.3000. First resistance is seen at $1.3500 and then at today’s high of $1.3900. First support is seen at today’s low of $1.3200 and then at $1.3000.
Wyckoff’s Market Rating: 1.0.
SEPTEMBER LUMBER
September lumber futures closed down $4.90 at $297.30 today. Prices closed near the session low. Bulls still have the near-term technical advantage, but faded today amid some bearish U.S. housing news this week. The next upside technical objective for the lumber bulls is closing prices above strong resistance at last week’s high of $312.20. The next downside price objective for the bears is pushing and closing prices below solid technical support at $295.00. First resistance is seen at $300.00 and then at today’s high of $303.00. First support is seen at $295.00 and then at $292.50.
Wyckoff’s Market Rating: 6.5.
