by Jim Wyckoff, Senior Analyst, TraderPlanet.com
MARCH SUGAR
March sugar closed up 12 points at 11.92 cents yesterday. Prices closed nearer the session low on short covering in a bear market. Prices hit a 10-month low on Monday. Very serious near-term chart damage has been inflicted recently. The market is still technically oversold and due for at least a corrective upside bounce very soon. Bulls’ next upside price objective is to push and close prices above solid technical resistance at 12.50 cents. Bears’ next downside price objective is to push and close prices below solid technical support at 11.00 cents. First resistance is seen at 12.00 cents and then at yesterday’s high of 12.23 cents. First support is seen at this week’s low of 11.72 cents and then at 11.50 cents.
Wyckoff’s Market Rating: 2.5
DECEMBER COFFEE
December coffee closed down 25 points at 114.25 cents yesterday. Prices closed nearer the session low and closed at a fresh contract low close yesterday. Very serious near-term technical damage has been inflicted recently. Coffee bears still have the solid near-term technical advantage. Prices are still in a six-week-old downtrend on the daily bar chart. However, the market is still oversold, technically, and due for an upside corrective bounce soon. Coffee bulls’ next upside price objective is pushing and closing prices above solid technical resistance at this week’s high of 122.05 cents. The next downside price objective for the bears is closing prices below solid technical support at 110.00 cents a pound. First support is seen at this week’s low of 112.95 cents and then at 112.00 cents. First resistance is seen at yesterday’s high of 116.30 cents and then at 118.00 cents.
Wyckoff’s Market Rating: 1.0
DECEMBER COCOA
December cocoa closed up $14 at $2,414 yesterday. Prices closed nearer the session low on short covering in a bear market. Prices Monday hit a fresh 5.5-month low. Serious chart damage has been inflicted recently. Prices are still in a three-month-old downtrend on the daily bar chart. The next upside price objective for the cocoa bulls is to push and close prices above solid technical resistance at $2,500. The next downside price objective for the bears is pushing and closing prices below solid technical support at the March low of $2,235. First resistance is seen at yesterday’s high of $2,459 and then at $2,500. First support is seen at yesterday’s low of $2,396 and then at this week’s low of $2,378.
Wyckoff’s Market Rating: 3.0
DECEMBER COTTON
December cotton closed down 76 points at 53.65 cents yesterday. Prices hit another fresh contract low yesterday. Very serious chart damage has been inflicted recently, including more yesterday. Cotton bears still have the solid near-term technical advantage. The next downside price objective for the bears is to produce a close below strong psychological support at 50.00 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at this week’s high of 57.34 cents. First resistance is seen at 54.00 cents and then at 55.00 cents. First support is seen at yesterday’s contract low of 53.41 cents and then at 53.00.
Wyckoff’s Market Rating: 1.0
NOVEMBER ORANGE JUICE
November orange juice closed up 65 points at $.8230. Prices closed near mid-range again yesterday in more quiet trading. The recent “collapse in volatility” makes me suspect a bigger price move is on the horizon. Bears are still in technical control as prices are in a 2.5-month-old downtrend on the daily bar chart. The next downside technical objective for the FCOJ bears is to produce a close below solid technical support at $.7500. The next upside price objective for the OJ bulls is pushing prices above solid technical resistance at $.9000. First resistance is seen at yesterday’s high of $.8445 and then at $.8600. First support is seen at yesterday’s low of $.8135 and then at $.8000.
Wyckoff’s Market Rating: 1.5
NOVEMBER LUMBER
November lumber futures closed up $3.20 at $189.70 yesterday. Prices closed near mid-range on tepid short covering in a bear market. Prices Monday hit another fresh contract low, amid the financial market meltdown. Lumber bears still have the near-term technical advantage. However, the market is still short-term oversold and due for more of a corrective bounce soon. The next upside technical objective for the lumber bulls is pushing and closing prices above solid technical resistance at $195.00. The next downside price objective for the bears is pushing and closing prices below solid support at $175.00. First resistance is seen at this week’s high of $193.50 and then at $195.00. First support is seen at yesterday’s low of $188.10 and then at the contract low of $186.50.
Wyckoff’s Market Rating: 1.5
