by Jim Wyckoff, Senior Analyst, TraderPlanet.com
MARCH SUGAR
March sugar closed down 17 points at 11.83 cents yesterday. Prices closed near mid-range. Bearish “outside markets” yesterday–lower crude oil prices, a firmer U.S. dollar and lower U.S. stock index prices–pressured the sugar market yesterday. Prices are still trading below a 2.5- month-old downtrend line drawn from the August and September highs. Bears have the near-term technical advantage. Bulls’ next upside price objective is to push and close prices above solid technical resistance at last week’s high of 13.00 cents. Bears’ next downside price objective is to push and close prices below solid technical support at 11.50 cents. First resistance is seen at 12.00 cents and then at yesterday’s high of 12.07 cents. First support is seen at yesterday’s low of 11.64 cents and then at 11.50 cents.
Wyckoff’s Market Rating: 2.5
DECEMBER COFFEE
December coffee closed up 30 points at 113.10 cents yesterday. Prices closed nearer the session high in quiet trading as December options expired yesterday. Coffee bears still have the overall near-term technical advantage. Prices are still in an 11-week-old downtrend on the daily bar chart. However, solid gains in the near term would form a bullish head-and- shoulders bottom reversal pattern on the daily bar chart. Coffee bulls’ next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 118.50 cents. The next downside price objective for the bears is closing prices below solid technical support at the October low of 105.05 cents a pound. First support is seen at yesterday’s low of 111.75 cents and then at 111.00 cents. First resistance is seen at yesterday’s high of 114.00 cents and then at 115.00 cents.
Wyckoff’s Market Rating: 2.5
DECEMBER COCOA
December cocoa closed up $15 at $1,954 yesterday. Prices closed near the session high yesterday on short covering in a bear market. Cocoa bears have the overall near-term technical advantage. The next upside price objective for the cocoa bulls is to push and close prices above solid technical resistance at $2,100. The next downside price objective for the bears is pushing and closing prices below solid technical support at the October low of $1,867. First resistance is seen at $1,975 and then at this week’s high of $2,006. First support is seen at yesterday’s low of $1,924 and then at last week’s low of $1,903.
Wyckoff’s Market Rating: 2.0
DECEMBER COTTON
December cotton closed down 196 points at 39.28 cents yesterday. Prices closed nearer the session low and set another fresh contract low yesterday. Bearish “outside markets” yesterday– lower crude oil prices, a firmer U.S. dollar and lower U.S. stock index prices–pressured the cotton market yesterday. The cotton bears have the solid near-term technical advantage, but the market is now short-term oversold and due for at least a corrective upside bounce very soon. Prices are still in a 7.5-month-old downtrend on the daily bar chart. The next downside price objective for the bears is to produce a close below technical support at 37.50 cents. The next upside price objective for the bulls is to produce a close above solid technical resistance at this week’s high of 44.10 cents. First resistance is seen at 40.00 cents and then at 41.00 cents. First support is seen at yesterday’s contract low of 38.45 cents and then at 38.00 cents.
Wyckoff’s Market Rating: 1.0
JANUARY ORANGE JUICE
January orange juice closed down 155 points at $.8325. Prices closed near mid-range yesterday. Bearish “outside markets” yesterday–lower crude oil prices, a firmer U.S. dollar and lower U.S. stock index prices–pressured the FCOJ market yesterday. Bears still have the overall near-term technical advantage. However, prices have been trading sideways for four weeks and that does favor the bullish camp as it suggests a bottoming process. The next downside technical objective for the FCOJ bears is to produce a close below solid technical support at the contract low of $.7540. The next upside price objective for the OJ bulls is pushing prices above solid technical resistance at $.8750. First resistance is seen at yesterday’s high of .8475 and then at last week’s high of $.8725. First support is seen at yesterday’s low of $.8215 and then at $.8100.
Wyckoff’s Market Rating: 2.0
JANUARY LUMBER
January lumber futures closed down $2.00 at $203.00 yesterday. Prices closed nearer the session high. Lumber bears still have the solid overall near-term technical advantage. The next upside technical objective for the lumber bulls is pushing and closing prices above solid technical resistance at $211.50. The next downside price objective for the bears is pushing and closing prices below solid support at the contract low of $191.50. First resistance is seen at yesterday’s high of $204.00 and then at this week’s high of $206.30. First support is seen at yesterday’s low of $200.70 and then at $199.90.
Wyckoff’s Market Rating: 2.0
