by Jim Wyckoff, Senior Analyst TraderPlanet.com
MAY SUGAR
May sugar closed up 36 points at 12.28 cents yesterday. Prices closed near mid-range and were supported on more short covering and bargain-hunting buying in a bear market. A weaker U.S. dollar yesterday also prompted fresh buying interest in sugar. Bears still have the near-term technical advantage and their next downside price objective is to push and close prices below solid support at last week’s low of 11.25 cents. Bulls’ next upside price objective is to push and close prices above solid chart resistance at 12.77 cents. First resistance is seen at yesterday’s high of 12.55 cents and then at 12.77 cents. First support is seen at 12.00 cents and then at yesterday’s low of 11.90 cents.
Wyckoff’s Market Rating: 4.0
MAY COFFEE
May coffee closed up 490 points at 133.65 cents yesterday. Prices closed near the session high yesterday and were supported by short covering and bargain-hunting buying in a bear market. Bears still have the solid near-term technical advantage. The next downside price objective for the bears is closing prices below solid support at last week’s low of 125.85 cents a pound. Bulls’ next upside price objective is closing prices above solid technical resistance at 140.00 cents. First support is seen at 132.00 cents and then at yesterday’s low of 129.65 cents. First resistance is seen at 135.00 cents and then at 137.50 cents.
Wyckoff’s Market Rating: 3.5
MAY COCOA
May cocoa closed up $144 at $2,409 yesterday. Prices closed near the session high on short covering and bargain-hunting buying after recent strong losses. A weaker U.S. dollar also prompted buying interest in cocoa yesterday. Bears still have the near-term technical advantage. Technicals still strongly suggest a near-term market top is in place. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of $2,252. The next upside price objective for the bulls is to push and close prices above technical resistance at $2,500. First resistance is seen at $2,426 and then at $2,450. First support is seen at $2,400 and then at $2,350.
Wyckoff’s Market Rating: 4.0
MAY COTTON
May cotton closed up 135 points at 74.40 cents yesterday. Prices closed nearer the session high on more short covering in a bear market. Bulls still have heavy lifting to do in the near term to suggest a resumption of an uptrend in prices. Traders are also awaiting next Monday’s key USDA planting intentions report. The next downside price objective for the bears is to produce a close below strong technical support at 72.00 cents. First resistance is seen at 75.00 cents and then at 76.00 cents. First support is seen at 74.00 cents and then at yesterday’s low of 73.17 cents.
Wyckoff’s Market Rating: 4.0
MAY ORANGE JUICE
May orange juice closed up 25 points at $1.1230. Prices closed nearer the session low yesterday. Bears are still in technical command. A 13-week-old downtrend is in place on the daily bar chart. The next upside technical objective for the FCOJ bulls is to produce a close above solid chart resistance at $1.1800. The next downside price objective for the OJ bears is pushing and closing prices below solid support at the contract low of $1.0850. First resistance is seen at $1.1400 and then at $1.1500. First support is seen at yesterday’s low of $1.1110 and then at $1.1000.
Wyckoff’s Market Rating: 1.0
MAY LUMBER
May lumber futures closed down $5.80 at $225.00 yesterday. Prices closed near the session low yesterday. Bulls faded yesterday after showing a bit of strength recently. Bears still have the near-term technical advantage. The next upside technical objective for the lumber bulls is pushing prices above solid resistance at this week’s high of $232.20. The next downside price objective for the bears is pushing and closing prices below solid support at the contract low of $220.20. First resistance is seen at $230.00 and then at $232.20. First support is seen at yesterday’s low of $225.00 and then at $220.20.
Wyckoff’s Market Rating: 1.5
