by Jim Wyckoff, Senior Analyst TraderPlanet.com
MARCH SUGAR
March sugar closed up 2 points at 9.76 cents today. Prices closed nearer the session high after hitting a fresh seven-week low early on. Bears have downside technical momentum as prices are in a four-week-old downtrend from the October high. However, a strong up day on Wednesday would suggest that price action today produced a bullish selling “exhaustion tail,” whereby selling interest dried up at lower price levels and prices then rebounded sharply. Bulls’ next upside price objective is to push and close prices above solid technical resistance at 9.90 cents. Bears’ next downside price objective is to push and close prices below solid technical support at the October low of 9.59 cents. First resistance is seen at 9.83 cents and then at this week’s high of 9.86 cents. First support is seen at 9.70 cents and then at today’s low of 9.63 cents.
Wyckoff’s Market Rating: 3.5.
MARCH COFFEE
March coffee closed up 25 points at 125.85 cents today. Prices closed near the session high today after hitting a fresh two-week low early on today. Bulls are fading a bit. Prices are still in the middle of a choppy trading range between the November high of 130.10 cents and the November low of 122.25 cents. The direction in which prices “break out” of this trading range will likely be the next significant near-term trend in prices. Bulls’ next upside price objective is closing prices above solid technical resistance at 130.10 cents. The next downside price objective for the bears is closing prices below solid support at today’s low of 123.60 cents a pound. First support is seen at 125.00 cents and then at 124.00 cents. First resistance is seen at today’s high of 126.15 cents and then at this week’s high of 127.50 cents.
Wyckoff’s Market Rating: 4.5.
MARCH COCOA
March cocoa closed up $2 at $1,938 today. Prices closed near mid-range in quieter trading today. Prices are now in the middle of a trading range on the daily bar chart. Bulls would gain fresh upside technical momentum by producing a close above solid resistance at last week’s high of $1,976. The next downside price objective for the bears is closing prices below solid support at the November low of $1,898. First resistance is seen at this week’s high of $1,955 and then at $1,970. First support is seen at this week’s low of $1,925 and then at $1,915.
Wyckoff’s Market Rating: 4.5.
MARCH COTTON
March cotton closed down 57 points at 64.35 cents today. Prices closed near the session low and hit another fresh 10-week low today. Serious chart damage has been inflicted recently, including more today. Cotton bears have solid downside technical momentum on their side. Bulls’ next upside price objective is producing a close above solid resistance at 66.50 cents. The next downside price objective for the bears is to produce a close below strong technical support at 64.00 cents. First resistance is seen at 65.00 cents and then at 65.50 cents. First support is seen at today’s low of 64.25 cents and then at 64.00.
Wyckoff’s Market Rating: 4.0.
JANUARY ORANGE JUICE
January orange juice closed up 300 points at $1.3830 today. Prices closed near the session high and closed at a fresh two-week high close again today. The bulls have gained fresh upside technical momentum recently. The next upside technical objective for the bulls is to produce a close above solid chart resistance at $1.4000. The next downside price objective for the OJ bears is pushing and closing prices below solid support at the November low of $1.3040. First resistance is seen at $1.4000 and then at last week’s high of $1.4195. First support is seen at today’s low of $1.3545 and then at $1.3375.
Wyckoff’s Market Rating: 6.0.
JANUARY LUMBER
January lumber futures closed up $0.50 at $253.30 today. Prices closed near the session low in quiet trading. Bulls have faded. The bears still have the overall near-term technical advantage. The next upside technical objective for the lumber bulls is pushing prices above strong resistance at $260.00. The next downside price objective for the bears is pushing and closing prices below solid support at $250.00. First resistance is seen at today’s high of $255.30 and then at this week’s high of $258.70. First support is seen at this week’s low of $252.20 and then at $250.00.
Wyckoff’s Market Rating: 1.5.
