The 16.90 area was resistance for October Sugar; it formed a double top around there in late May/early June. I’ve been bullish on sugar since it cleared that area last Tuesday. A sharp runup after the clearing 16.91 made it hard to get in; Friday’s break gave a good opportunity to enter today.
Friday was a breakout bar for October Sugar; it had the narrowest trading range of the previous four sessions.A 50% retracement of the range from the 16.91 breakout to Friday’s high was at 17.33; holding this area was a good indication to look for a rally.
As today was a breakout day; I was looking for a directional move as clearing near in resistance.Potential entry points were 17.51 (midpoint of Friday’s range) or first Trade or Fade resistance at 17.60.After these were taken out, Friday’s high at 17.75 was the next resistance.
Now that we’re long, what do we look for next?Conservative, longer term traders might keep stops around today’s low.If you want to use a tighter stop, I’d place them below the midpoint of today’s range at 17.60.You have to go back to 2006 for chart points to look at for rally objectives; there were a series of highs at 18.00, 18.48 and 19.73 for potential targets.
Good opportunity to pick it up.
Copyright 2009
This feed is for personal, non-commercial use only.
The use of this feed on other websites breaches copyright. If this content is not in your news reader, it makes the page you are viewing an infringement of the copyright. (Digital Fingerprint:
f2ea78dd95959aa32f651cec20a16e23)
