by Jim Wyckoff, Senior Analyst TraderPlanet.com
JULY SUGAR
July sugar closed down 65 points at 9.66 cents today. Prices closed near the session low and hit a fresh seven-month low today. Bearish “outside markets”–sharply lower crude and gold and a stronger U.S. dollar–sunk the sugar market today. Bears still have the technical advantage and gained more power today amid no strong technical clues of a market low being in place. Sugar prices are still in a three-month-old downtrend on the daily bar chart. Bears’ next downside price objective is to push and close prices below strong technical support at 9.00 cents. Bulls’ next upside price objective is to push and close prices above solid technical resistance at this week’s high of 10.59 cents. First resistance is seen at 10.00 cents and then at 10.25 cents. First support is seen at today’s low of 9.64 cents and then at 9.50 cents.
Wyckoff’s Market Rating: 2.5
JULY COFFEE
July coffee closed down 455 points at 132.80 cents today. Prices closed nearer the session low today, amid bearish outside markets–sharply lower gold and crude and a stronger U.S. dollar. Trading has been choppy in coffee and prices are still trapped in a bigger trading range, bound by the April high of 142.85 cents and the March low of 128.40 cents. The direction in which prices “break out” of the bigger trading range will very likely be the direction of the next significant price trend in this market. Coffee bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of 138.50 cents. The next downside price objective for the bears is closing prices below solid support at the March low of 128.40 cents a pound. First support is seen at today’s low of 131.55 cents and then at 130.00 cents. First resistance is seen at 134.00 cents and then at 135.00 cents.
Wyckoff’s Market Rating: 4.0
JULY COCOA
July cocoa closed down $5 at $2,785 today. Prices closed nearer the session high today and hit a fresh five-week high. Bulls have upside technical momentum, but stiff overhead resistance lies at the April high of $2,824. Bearish “outside markets” (sharply lower gold and crude and a stronger U.S. dollar) limited the upside in cocoa today. The next upside price objective for the bulls is to push and close prices above technical resistance at the April high of $2,824. The next downside price objective for the bears is closing prices below solid support at $2,700. First resistance is seen at today’s high of $2,814 and then at $2,824. First support is seen at $2,750 and then at today’s low of $2,719.
Wyckoff’s Market Rating: 7.5
JULY COTTON
July cotton closed down 112 points at 64.32 cents today. Prices closed near the session low and hit a fresh 10-month low today. Traders are spooked about the CFTC investigating the cotton market, which is bearish. Serious near-term chart damage has been inflicted recently. Bears have the solid near-term technical advantage amid no technical clues that a market low is close at hand. A three-month-old downtrend is still in place on the daily bar chart. The next downside price objective for the bears is to produce a close below strong technical support at the August 2007 low of 62.30 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at this week’s high of 66.76 cents. First resistance is seen at today’s high of 65.01 cents and then at 66.00 cents. First support is seen at 64.00 cents and then at today’s low of 63.10 cents.
Wyckoff’s Market Rating: 2.0
JULY ORANGE JUICE
July orange juice closed up 375 points at $1.1225. Prices closed nearer the session high, hit a fresh three-week high and were supported on short covering in a bear market. Bears still have the technical advantage. The next upside technical objective for the FCOJ bulls is to produce a close above chart resistance at $1.1500. The next downside price objective for the OJ bears is pushing and closing prices below solid support at this week’s low of $1.0700. First resistance is seen at today’s high of $1.1400 and then at $1.1500. First support is seen at $1.1000 and then at today’s low of $1.0860.
Wyckoff’s Market Rating: 2.5
JULY LUMBER
July lumber futures closed up $1.30 at $245.10 today. Prices closed near mid-range and were supported by tepid short covering in a bear market. The next upside technical objective for the lumber bulls is pushing and closing prices above solid resistance at $250.00. The next downside price objective for the bears is pushing and closing prices below solid support $241.30. First resistance is seen at today’s high of $246.80 and then at $248.00. First support is seen at today’s low of $243.00 and then at $241.30.
Wyckoff’s Market Rating: 2.5
