by Jim Wyckoff, Senior Analyst TraderPlanet.com
MAY SUGAR
May sugar closed down 84 points at 14.18 cents yesterday. Prices closed nearer the session low yesterday on profit-taking pressure. No serious chart damage occurred yesterday but strong follow-through selling pressure on Wednesday would likely produce some near-term chart damage. Bulls still have overall technical advantage. A three- month-old uptrend remains in place on the daily bar chart. Bulls’ next upside price objective is to push and close prices above solid technical resistance at this week’s high of 15.07 cents. Bears’ next downside price objective is to push and close prices below psychological support at 14.00 cents. First resistance is seen at 14.25 cents and then at 14.50 cents. First support is seen at yesterday’s low of 14.08 cents and then at 14.00 cents.
Wyckoff’s Market Rating: 7.5
MAY COFFEE
May coffee closed down 450 points at 163.05 cents yesterday. Prices closed near the session low and scored a mildly bearish “outside day” down on the daily bar chart yesterday, on more profit taking from recent strong gains. Coffee bulls have the upside near-term technical advantage. Bulls’ next upside price objective is closing prices above solid technical resistance at the contract high of 171.90 cents. The next downside price objective for the bears is closing prices below solid support at 160.00 cents a pound. First support is seen at yesterday’s low of 163.00 cents and then at 161.00 cents. First resistance is seen at 165.00 cents and then at 166.35 cents.
Wyckoff’s Market Rating: 7.5
MAY COCOA
May cocoa closed down $17 at $2,759 yesterday. Prices closed nearer the session low and scored a bearish “outside day” down on the daily bar chart, after hitting another fresh contract high early on yesterday. If there is strong follow- through selling pressure on Wednesday, then a bearish “key reversal” down on the daily bar chart would be confirmed. That would be one early technical clue of a market top being in place. But right now the bulls still have the near-term technical advantage. A three-month-old uptrend is still in place on the daily bar chart. The next upside price objective for the bulls is to push and close prices above technical resistance at yesterday’s contract high of $2,845. The next downside price objective for the bears is closing prices below solid support at $2,700. First resistance is seen at $2,800 and then at $2,813. First support is seen at yesterday’s low of $2,724 and then at $2,700.
Wyckoff’s Market Rating: 8.0
MAY COTTON
May cotton closed up the expanded 400-point limit at 88.86 cents yesterday. Prices hit another fresh contract and multi- year high yesterday on more fund buying and on a battle to “buy acres” from corn and soybeans in the U.S. south this growing season. Cotton bulls were impressive yesterday and bucked the trend of lower commodity prices yesterday. The cotton bulls remain technically powerful amid a recent very steep uptrend that has developed on the daily bar chart. Cotton bulls’ next upside price objective is to push and close prices above resistance at 90.00 cents. The next downside price objective for the bears is to produce a close below strong technical support at 85.00 cents. First resistance is seen at 89.00 cents and then at 90.00 cents. First support is seen at 88.00 cents and then at 87.00 cents.
Wyckoff’s Market Rating: 10.0
MAY ORANGE JUICE
May orange juice closed down 355 points at $1.3050. Prices closed nearer the session low after hitting a fresh three- week high yesterday. An eight-week-old downtrend is still 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 yesterday’s high of $1.3550. 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 $1.3300 and then at yesterday’s high of $1.3550. First support is seen at yesterday’s low of $1.2810 and then at $1.2750.
Wyckoff’s Market Rating: 5.0
MAY LUMBER
May lumber futures closed down the $10.00 limit at $234.00 yesterday. Prices are back near the contract low. Bulls are again frustrated. Lumber can’t follow big rallies in other commodity markets, but lumber sure did sell off in tandem with other commodity markets yesterday. The next upside technical objective for the lumber bulls is pushing prices above solid resistance at last week’s high of $246.70. The next downside price objective for the bears is pushing and closing prices below support at the contract low of $232.80. First resistance is seen at $238.00 and then at $240.00. First support is seen at $232.80 and then at $230.00.
Wyckoff’s Market Rating: 1.0
