Blue Line Breakfast Report - Sugar Cocoa Coffee OJ - January 29
“Actionable Trading Ideas that help you stay ahead of the markets”
Cocoa - YTD up 5.47%
Futures started the session stronger yesterday but fell on news that much needed rain moved through parts of Ghana and the Ivory Coast. Remember it has been hot and dry for several weeks now and prices have rallied from 2388 to 2789 over the course of a month. From a trading standpoint the market needs to close over 2767 or punch through 2800 to resume the bull trend. Support at 2697 was broken yesterday and follow through selling had started this current session and the next downside target is a washout down to 2616 the 50% retracement.
R2 - 2800
R1 - 2767
S1 - 2616
S2 - 2576
Downside target = 2617
Reversal point = 2800
Sugar - YTD up 10.51%
With energy prices starting to rebound off their lows we should see a small boost in ethanol demand therefore supporting prices. With the Brazilian Real finally stabilizing, I would expect sugar to focus back on the supply shortfall of 6 million tonnes and expanding. Watch the key level of 14.90 to be breached and reigniting the next extension higher.
R2 - 15.49 - High Nov 20th 2017
R1 - 14.90
S1 - 14.05
S2 - 13.79
Target - 15.49
Reversal point = 14.05
Orange Juice - YTD down 2.01%
Finally a spark of hope that the market is willing to make a trend reversal. Unfortunately in the game of bottom picking, we are usually left with disappointment and left scratching our heads. You have defined risk with 94.25 being a key level of support and 100 as an upside target.
Coffee - YTD down 19.35%
105 downside target has been achieved and with talk of a large crop out of Brazil I would expect the decline to continue. ICE coffee stocks continue to rise and with the news of the Coronavirus, we may continue to see demand destruction continue.
R2 - 113.20
R1 - 109.11 - 200 DMA
S1 - 100.50
S2 - 96 - Key low from last October
Good luck and good trading,
Chief Market Strategist
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*percentage figures are taken at time of writing
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures; LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results