by Jim Wyckoff, Senior Analyst TraderPlanet.com
JULY SUGAR
July sugar closed down 48 points at 11.17 cents yesterday. Prices closed near the session low and closed at a fresh five-month low close yesterday, amid a firmer U.S. dollar and a sell off in gold. Sugar prices are still in a 10- week-old downtrend on the daily bar chart and yesterday’s price action produced a bearish downside “breakout” from a bearish symmetrical triangle pattern on the daily bar chart. Bears’ next downside price objective is to push and close prices below solid technical support at 11.00 cents. Bulls’ next upside price objective is to push and close prices above solid technical resistance at last week’s high of 11.92 cents. First resistance is seen at 11.50 cents and then at yesterday’s high of 11.69 cents. First support is seen at yesterday’s low of 11.14 cents and then at 11.00 cents.
Wyckoff’s Market Rating: 3.0
JULY COFFEE
July coffee closed down 135 points at 137.20 cents yesterday. Prices closed near mid-range yesterday. Trading has been choppy and in a sideways 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 aforementioned 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 last week’s high of 140.00 cents. The next downside price objective for the bears is closing prices below solid support at 134.00 cents a pound. First support is seen at yesterday’s low of 135.65 cents and then at 134.45 cents. First resistance is seen at 138.00 cents and then at yesterday’s high of 139.15 cents.
Wyckoff’s Market Rating: 5.0
JULY COCOA
July cocoa closed down $129 at $2,622 yesterday. Prices closed nearer the session low yesterday and were pressured by a stronger dollar and weaker gold prices. No serious chart damage occurred yesterday, but strong follow-through selling on Wednesday would likely produce significant near-term chart damage. The next upside price objective for the bulls is to push and close prices above technical resistance at this week’s high of $2,759. The next downside price objective for the bears is closing prices below solid support at the May low of $2,555. First resistance is seen at $2,650 and then at $2,700. First support is seen at $2,600 and then at yesterday’s low of $2,593.
Wyckoff’s Market Rating: 6.0
JULY COTTON
July cotton closed down 84 points at 70.97 cents yesterday. Prices closed near the session low. Bears still have the near-term technical advantage. A nine-week-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 May low of 68.52 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at 74.00 cents. First resistance is seen at yesterday’s high of 72.00 cents and then at last week’s high of 72.25 cents. First support is seen at this week’s low of 70.20 cents and then at 70.00 cents.
Wyckoff’s Market Rating: 4.0
JULY ORANGE JUICE
July orange juice closed down 280 points at $1.1300. Prices closed nearer the session low yesterday and hit a fresh four- week low. Bears this week have gained solid downside technical momentum. The next upside technical objective for the FCOJ bulls is to produce a close above solid chart resistance at $1.2000. The next downside price objective for the OJ bears is pushing and closing prices below solid support at the March low of $1.0950. First resistance is seen at $1.1500 and then at yesterday’s high of $1.1780. First support is seen at yesterday’s low of $1.1190 and then at $1.0950.
Wyckoff’s Market Rating: 3.0
JULY LUMBER
July lumber futures closed down $6.10 at $244.70 yesterday. Prices closed near the session low. Bulls lost their upside technical momentum yesterday. The next upside technical objective for the lumber bulls is pushing and closing prices above solid resistance at last week’s high of $254.90. The next downside price objective for the bears is pushing and closing prices below solid support at of $237.00. First resistance is seen at $248.00 and then at yesterday’s high of $250.80. First support is seen at $244.00 and then at $242.50.
Wyckoff’s Market Rating: 2.5
