Looking Ahead to Thursday by reflecting back on Wednesday's trading action
What's Up, What's Down
LUMBER: Lumber closed higher off the housing starts report and is now in a small BULL PENNANT. It should still test its highs on the 5th of February.
COCOA: Cocoa made its highest high in seven trading days before selling off to close lower which I consider bearish action while still in a resistance area. There is more resistance around the 330 area and support around 300 basis the May contract with my sell signal still looking okay.
SUGAR: Sugar closed sharply lower setting up for a huge break. However, I still don't have sell signal at this time. Sugar has been basically falling since its reversal type action on February 1st.
COTTON: Cotton settled slightly lower now in a small BULL PENNANT still at the upper end of a good resistance area. The long term trend is still higher overall with a close over 7600 imperative for the bulls.
COFFEE: Coffee settled lower this time still needing to hold the 13000 area basis the March contract while there is heavy resistance over 13500. Coffee has also been making lower highs and lows since the middle of December. Finally, if you're a bull there is a DOUBLE BOTTOM at 12850(Mar. contract) to give you hope.
ORANGE JUICE: OJ settled slightly lower while consolidating over the last couple of months. My buy signal is still good because the long-term trend is still up but keep an eye on the 13000 level basis the March contract.