Cocoa Climbs To New Level

In a move that implies a new support level above the psychological round number,
July cocoa
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gapped above the 1000 level. Cocoa had been
unable to crack below the 950-960 area and is rallying in its biggest expansion
bar in weeks. The move represents a break of the downtrending line that had
left cocoa in a descending triangle. The Commitment of Traders report with
options showed a large short position held by funds, providing short covering
fuel. Cocoa has rallied move than 50 and is up 46 at 1035.

July sugar
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, from the Momentum-5
List
, is breaking out from a consolidation-on-high pattern and looks set up
to challenge its recent high. Notice that on recent up days, sugar has had a
tendency to rally straight up from its opening tick. This makes entry using the 1090
Open
viable. 

June lean hogs
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is in the fourth day of a
Pullback From Lows
setup. Look for a move below the low of the high pullback bar. 

Also in the meats, August feeder cattle

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followed up yesterday’s expansion bar with a gap opening. The past
two days’ upside push has left feeders below 88.15 resistance (the top of the
triangle). The recent action could be an early indication of a move to a new
level in this contract as well. 

Trading has been choppy around July wheat’s
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contract low and Turtle Soup Plus One Buy
setup. Look for a rebound following five days of selling.