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.
- WEEKLY CHART – CONTINUATION:
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. - DAILY CHART – MAR-10:
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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