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Futures trading involves substantial risk of loss and may not be suitable for all investors.

  • Phillip Streible

Breakfast Report - Cocoa Sugar Coffee OJ

“Actionable Trading Ideas that help you stay ahead of the markets”

Cocoa (May)

Fundamentals: The market continues to see bullish fundamentals in the background while the effective washout in the outside markets has taken its toll on cocoa. I believe cocoa and sugar are going to have snap back rallies once the dust settles so put them on your radar. The international cocoa association projected global production deficit of 85,000 tonnes for the 2019/2020 season, larger than analyst projections.

Technicals: Cocoa has mild support at 2526 which is the 200 DMA and we were unable to close below that level yesterday. The Trend trading system triggered a short on Feb 28th at 2671 and has a stop close only working at 2709. The first area of resistance is 2605. If you are going to counter trend trade this market use a close below the 200 DMA as your stop out point or stick with long dated call options.

Bias: Bearish/Neutral

Previous Session Bias: Bearish

Resistance: 2622***, 2706****

Pivot: 2526

Support: 2400***, 2200****


Sugar (May)

Fundamentals:Sugar underwent sizable pressure yesterday but closed sharply off the lows. The market was initially tracking energies but could be overdone. The Brazilian Real fell to an all-time low, you want to wait for markets to stabilize before picking a bottom or consider limited risk option strategies.

Technicals: The Trend Trading system established a short on March 2nd at 13.81 and the buy stop is at 14.59. The first area of resistance is 13.07.

Bias:Bearish/Neutral

Previous Session Bias:Bearish

Resistance: 12.93***, 13.26****

Pivot: 12.18

Support: 12.00***, 11.89****


Coffee (May)

Fundamentals: Demand concerns and supply uncertainty leaves a mixed bag for futures prices. This market is hard to trade with 5 cent moves on a daily basis which leaves traders with little margin of error. The Brazilian Real reached another record low. Chinese Starbucks are back in business but globally customer traction should by much lower.

Technicals: Trend Traders are making a small come back in their long positions with their established buy on March 3rd at 122.20 and their sell trigger is down at 102.71. The first area of support is 99.20 so this is a very wide trade when it comes to risk/reward.

Bias: Neutral

Previous Session Bias: Neutral

Resistance: 115***, 120.59****

Pivot:105

Support: 102.55***, 99.55****


Orange Juice (May)

Technicals: Trend Traders are now short across the board with the front month triggering a short on march 9th at 94.05 and the buy trigger is at 99.39. The first area of resistance is at 98.69.

Bias: Bearish/Neutral

Previous Session Bias: Neutral

Resistance: 96.72***, 99.09****

Pivot:95.00

Support: 92.15***, 90.00****


PHILLIP STREIBLE

Chief Market Strategist

www.bluelinefutures.com

Direct: 312-858-7303

Phil@bluelinefutures.com


Blue Line Futures LLC

141 W. Jackson #2845

Chicago IL 60604


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.

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