What’s Up, What’s Down: Lumber, Cocoa High; OJ Low
Comments for for Monday, June 29, 2009
Looking Ahead to Monday by Reflecting Back on Friday’s Price Action
Lumber settled higher once again acting like it will test its highs back on the 22nd of June but now also forming a potential top. Lumber does have good support under 220 basis the September contract.
Cocoa settled slightly lower and did come within 26 points form my 2400 objective. However, I still look for cocoa to test that area again.
Sugar made a new contract high before settling lower in a reversal type action. Still sugar looks extremely bullish technically.
Cotton settled lower this time and still should work lower overall with good resistance starting above 5800 basis the December new crop contract as seen below. My objective, for now, is still the 5400 area. SELL SIGNAL.
Coffee settled lower continuing to hold a strong support area(11500-12500) basis the September contract.
OJ made its lowest close since the middle of March with lower closes 18 out of the last 19 trading sessions.
See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.
Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at firstname.lastname@example.org.