by Jim Wyckoff, Senior Analyst TraderPlanet.com
MARCH SUGAR
March sugar closed up 18 points at 9.93 cents today. Prices closed near the session high on short covering from recent losses. Bears still have the downside technical advantage as a two-week-old downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to push and close prices above solid resistance at 10.00 cents. Bears’ next downside price objective is to push and close prices below solid technical support at this week’s low of 9.59 cents. First resistance is seen at today’s high of 9.96 cents and then at 10.00 cents. First support is seen at 9.80 cents and then at today’s low of 9.68 cents.
Wyckoff’s Market Rating: 4.0.
DECEMBER COFFEE
December coffee closed down 550 points at 133.25 cents today. Prices closed nearer the session low on profit- taking pressure from recent gains and on a lack of fresh bullish fundamental news. No serious chart damage occurred today, but strong follow-through selling on Wednesday would produce serious near-term chart damage. Bulls’ next upside price objective is closing prices above solid technical resistance at this week’s high of 139.90 cents. The next downside price objective for the bears is closing prices below solid support at 130.00 cents a pound. First support is seen at today’s low of 132.55 cents and then at 132.00 cents. First resistance is seen at 135.00 cents and then at 137.00 cents.
Wyckoff’s Market Rating: 7.0.
Source: VantagePoint Intermarket Analysis Software
DECEMBER COCOA
December cocoa closed up $9 at $1,825 today. Prices closed near mid-range and were supported by tepid short covering in a bear market. Serious near-term chart damage has occurred recently to suggest still more downside price potential in the near term. The next downside price objective for the bears is closing prices below solid support at $1,800. The next upside price objective for the bulls is closing prices above solid chart resistance at $1,870. First resistance is seen at today’s high of $1,843 and then at this week’s high of $1,850. First support is seen at today’s low of $1,814 and then at this week’s low of $1,810.
Wyckoff’s Market Rating: 3.0.
DECEMBER COTTON
December cotton closed up 47 points at 62.90 cents today. Prices closed near mid-range and were supported by stronger soybean prices. Look for cotton to continue to track the soybean futures market closely in the coming weeks. Bulls need to show more power soon. Bulls’ next upside objective is producing a close above solid resistance at 64.00 cents. The next downside price objective for the bears is to produce a close below strong technical support at last week’s low of 62.15 cents. First resistance is seen at today’s high of 63.55 cents and then at this week’s high of 63.80 cents. First support is seen at today’s low of 62.30 cents and then at 62.15.
Wyckoff’s Market Rating: 6.5.
NOVEMBER ORANGE JUICE
November orange juice closed down 5 points at $1.3705 today. Prices closed near mid-range. Prices then rallied modestly in after-hours electronic trading. Traders are awaiting Friday morning’s Florida orange crop estimate from USDA. Reports of dry weather in Brazilian orange-growing regions are still fundamentally bullish. The bulls still have some upside technical momentum. The next upside technical objective for the bulls is to produce a close above solid chart resistance at last week’s high of $1.3990. The next downside price objective for the OJ bears is pushing and closing prices below solid support at $1.3250. First resistance is seen at $1.3800 and then at $1.3990. First support is seen at $1.3600 and then at $1.3500.
Wyckoff’s Market Rating: 7.5.
NOVEMBER LUMBER
November lumber futures closed down $3.30 at $243.20 today. Prices closed near the session low. Bears still have the near-term technical advantage. But trading has turned sideways in recent weeks, and the downtrend has ended. My bias is still that there is not much left on the downside in lumber. The next upside technical objective for the lumber bulls is closing prices above strong resistance at $253.00. The next downside price objective for the bears is pushing and closing prices below solid support at the contract low of $237.10. First resistance is seen at today’s high of $245.80 and then at $248.00. First support is seen at $240.00 and then at $237.10.
Wyckoff’s Market Rating: 1.5.
