What’s Up, What’s Down: The Softs Closed Low
Comments for Tuesday, February 24, 2009
Looking Ahead to Today By Reflecting back at Monday’s price action
SOFTS:
LUMBER: Lumber settled lower again; still between 2 island reversals a week apart but, either way, still is in a major down-trend. Also, lumber is closing in on its island reversal below.
COCOA: Cocoa closed sharply lower again down for the 4th trading session in a row making another new recent low and close. I have a Sell Signal in Cocoa.
SUGAR: Sugar settled lower again still in a support area but the chart action is acting toppy, while forming a potential top. I currently have Buy Signal for Sugar.
COTTON: Cotton had its lowest low and close since early December again. I am bearish on Cotton.
COFFEE: Coffee settled higher holding its last support area around the 11000 area basis the May contract. I currently have a Sell Signal in Coffee.
ORANGE JUICE: OJ made a new contract low but closed above Friday’s highs which means a KEY REVERSAL in the May contract.
See the balance of my morning comments, including the Metals, Financials, 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 ralexander@zaner.com.