by Jim Wyckoff, Senior Analyst TraderPlanet.com
OCTOBER SUGAR
October sugar closed down 19 points at 12.52 cents yesterday. Prices closed near the session low and closed at a fresh five-week low close. Bearish “outside markets”– weaker crude oil prices and a firmer U.S. dollar–did pressure sugar again yesterday. Sugar bears still have downside technical momentum on their side. Bulls’ next upside price objective is to push and close prices above solid technical resistance at 13.00 cents. Bears’ next downside price objective is to push and close prices below solid technical support at 12.00 cents. First resistance is seen at yesterday’s high of 12.75 cents and then at this week’s high of 12.84 cents. First support is seen at yesterday’s low of 12.50 cents and then at this week’s low of 12.37 cents.
Wyckoff’s Market Rating: 3.5
DECEMBER COFFEE
December coffee closed down 25 points at 144.20 cents yesterday. Prices closed near mid-range yesterday in quiet trading. Bulls and bears are presently on a level near-term technical playing field. Bearish “outside markets”–lower crude oil prices and a firmer U.S. dollar–did pressure coffee yesterday. Coffee bulls’ next upside price objective is pushing and closing prices above solid technical resistance at last week’s high of 152.25 cents. The next downside price objective for the bears is closing prices below solid support at this week’s low of 141.80 cents a pound. First support is seen at yesterday’s low of 142.50 cents and then at 141.80 cents. First resistance is seen at yesterday’s high of 145.50 cents and then at 146.00 cents.
Wyckoff’s Market Rating: 5.0
DECEMBER COCOA
December cocoa closed up $27 at $2,691 yesterday. Prices closed nearer the session high yesterday on short covering following Tuesday’s big plunge. Serious chart damage was inflicted Tuesday to suggest a resumption of the recent downtrend. Bearish “outside markets”–lower crude oil prices and a firmer U.S. dollar–did limit the upside in cocoa yesterday. The next upside price objective for the cocoa bulls is to push and close prices above solid technical resistance at $2,850, which would fill on the upside Monday’s downside price gap on the daily chart. The next downside price objective for the bears is closing prices below solid technical support at the August low of $2,574. First resistance is seen at yesterday’s high of $2,721 and then at $2,750. First support is seen at $2,641 and then at yesterday’s low of $2,627.
Wyckoff’s Market Rating: 4.0
DECEMBER COTTON
December cotton closed down 69 points at 69.49 cents yesterday. Prices closed near the session low in quieter trading. Bearish “outside markets” yesterday–lower crude oil prices and a firmer U.S. dollar–did pressure cotton. Cotton bears still have the near-term technical advantage. The next downside price objective for the bears is to produce a close below strong technical support at the August low of 66.79 cents. The next upside price objective for the bulls is to produce a close above solid chart resistance at 72.00 cents. First resistance is seen at yesterday’s high of 70.33 cents and then at last week’s high of 71.18 cents. First support is seen at 69.00 cents and then at this week’s low of 68.10 cents.
Wyckoff’s Market Rating: 3.0
NOVEMBER ORANGE JUICE
November orange juice closed up 40 points at $1.0660. Prices closed nearer the session low yesterday amid bearish “outside markets”–lower crude oil prices and a firmer U.S. dollar. The next downside technical objective for the FCOJ bears is to produce a close below solid technical support at the August low of $.9965. The next upside price objective for the OJ bulls is pushing and closing prices above solid technical resistance at last week’s high of $1.1860. First resistance is seen at yesterday’s high of 1.0835 and then at $1.1000. First support is seen at this week’s low of $1.0525 and then at $1.0365.
Wyckoff’s Market Rating: 3.5
SEPTEMBER LUMBER
September lumber futures closed down $0.20 at $252.80 yesterday. Prices closed nearer the session high after hitting a fresh five-week low early on. Bears still have the near- term technical advantage. The next upside technical objective for the lumber bulls is pushing and closing prices above solid technical resistance at $258.50. The next downside price objective for the bears is pushing and closing prices below solid support at yesterday’s low of $248.90. First resistance is seen at yesterday’s high of $255.00 and then at $258.50. First support is seen at $250.20 and then at $248.90.
Wyckoff’s Market Rating: 2.0
