The Commodity Specialist view – Following our 17th Sep Update on Sugar the outlook has remained bearish, on the back of a Key Reversal Week. The signal has proved a good one, with the next bear leg looking to have gotten under way.

    The Key Reversal Day week of early Sep remains the dominant feature here.
    First notable support on this continuation chart is the old 19.73 2006 high.
    After that reversal week we were viewing any s/term bounce as temporary.
    Now that the 21.95 low 08-Sep low has been revisited we look at lower targets/supports.
    The first interesting one is around the 20.77 38.2% pullback – there’s a Fibo projection just below at 20.63.
    Then, note the 1.618 swing projection off prior 21.95-25.43 bounce, at 19.80, RIGHT AT THAT OLD 19.73 HIGH ON THE CONTINUATION CHART.
    In the up-coming Commodity Specialist Guide we’ll look at a couple of closer supports too.
    And in the Guide we are theoretically short at 24.50, targeting partial profits at 21.25, stops already tightened to 25.50. Further profit-taking is probably favoured towards that 19.80/73 area.

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