by Jim Wyckoff, Senior Analyst, TraderPlanet.com
MARCH SUGAR
March sugar closed up 52 points at 12.70 cents yesterday. Prices closed nearer the session high yesterday and hit a fresh four-week high. Bullish “outside markets” that included sharply higher crude oil prices and a higher stock market, and a sharply lower U.S. dollar, did support buying interest in sugar yesterday. Prices are still trading below a 2.5-month-old downtrend line drawn from the August and September highs. However, the bulls have gained fresh upside near-term technical momentum. Bulls’ next upside price objective is to push and close prices above solid technical resistance at yesterday’s high of 13.00 cents. Bears’ next downside price objective is to push and close prices below solid technical support at 11.75 cents. First resistance is seen at 13.00 cents and then at 13.25 cents.
First support is seen at 12.50 cents and then at yesterday’s low of 12.09 cents.
Wyckoff’s Market Rating: 4.5
DECEMBER COFFEE
December coffee closed up 475 points at 117.10 cents yesterday. Prices closed near the session high yesterday on short covering and bargain-hunting buying interest. Bullish “outside markets” that included sharply higher crude oil prices and a higher stock market, and a sharply lower U.S. dollar, did support buying interest yesterday. Coffee bears still have the overall near-term technical advantage. Prices are still in a 10-week-old downtrend on the daily bar chart. Coffee bulls’ next upside price objective is pushing and closing prices above solid technical resistance at 121.10 cents. The next downside price objective for the bears is closing prices below solid technical support at this week’s low of 111.50 cents a pound. First support is seen at 115.00 cents and then at 112.50 cents. First resistance is seen at yesterday’s high of 117.95 cents and then at 121.10 cents.
Wyckoff’s Market Rating: 3.5
DECEMBER COCOA
December cocoa closed up $54 at $2,023 yesterday. Prices closed near the session high yesterday on short covering in a bear market. Bullish “outside markets” that included sharply higher crude oil prices and a higher stock market, and a sharply lower U.S. dollar, did support buying interest yesterday. Cocoa bears still 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 yesterday’s high of $2,057 and then
