Blue Line Breakfast Report - Sugar Cocoa Coffee OJ - January 31
“Actionable Trading Ideas that help you stay ahead of the markets”
Cocoa - YTD up 9.53%
The technical action in cocoa remains impressive with the average true range pushing up to 67 points meaning that volatility is picking up. Fund traders continue to add to positions as demand remains positive and the weather continues to remain hot and dry in the growing regions.
Technically the market is backing and filling with the next upside target is the contract high at 2859. First level of support would be yesterday's low at 2741 and a break below 2673 would be a sell trigger.
R2 - 2900
R1 - 2859
S1 - 2741
S2 - 2673
Upside target = 2859
Reversal point = 2673
Sugar - YTD up 9.46%
The uptrend continues as fundamentals are taking over as the global production deficit continues to expand, we should see futures re-challenge the contract highs at 14.87. China is the second largest importer of sugar and with the Coronavirus continuing to grab headlines, I am surprised by the market's strength.
Technically the market is targeting an upside breakout at 15.49 and first level of support is down at 14.20 while the sell trigger is down at 13.79.
R2 - 15.49 - High Nov 20th 2017
R1 - 14.90
S1 - 14.36
S2 - 14.05
Target - 15.49
Reversal point = 14.05
Orange Juice - YTD down 3.91%
Technically the market is continuing to show a coiling pattern with the average true range at 1.50 cents per day meaning the market is lacking direction. I would continue to sit on the sidelines with this market until we breach 98 to the upside or below 94.
Coffee - YTD down 22.36%
The market remains in liquidation mode with 100 being a psychological level of support. Once this level is breached sell stop triggers should be hit with the weak longs throwing in the towel. With 2000 Starbucks locations closed in China, this will weigh in on demand over the long run. ICE exchange coffee stocks continue to rise to a new monthly high.
R2 - 113.70
R1 - 109.09 - 200 DMA
S1 - 100.50
S2 - 96 - Key low from last October
Good luck and good trading,
Chief Market Strategist
Follow us on Twitter: @BlueLineFutures
Follow us on Facebook: Blue Line Futures Facebook page
Subscribe to our YouTube channel: Blue Line Futures YouTube channel
*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