Sugar is one of the commodities currently booming. The chart is clear as the recent rate of rise is impressive and that the price objective for the bulls seems to be evident.
Sugar prices have bounced by 56% since the beginning of the year, jumping from $11.80 to $18.43 (per pound, on the New York Board of Trade).
The current bullish move is actually the combination of three consecutive waves followed by consolidation periods. On the chart, those waves are symbolized by the green segments whereas the consolidation phases occurred in the blue squares. It has been a regular but powerful rise and it is likely now that the traders involved in this move will want to push it higher.
Where exactly? Well, it seems that the target should be the previous high level posted in early February 2006, when the highest closing price was $19.30 (point A on the chart). The highest point posted in intraday session was $19.73, which also might be a price objective. Anyway it is expected that a lot of selling interests should appear between $19 and $20. The bears should indeed take the opportunity of a “double top” chartist pattern to initiate a correction after such a rise and to eventually create a trend reversal.
{ 1 comment… read it below or add one }
“Sugar prices have bounced by 56% since the beginning of the year, jumping from $11.80 to $18.43 (per pound, on the New York Board of Trade).”
$18.43 for a pound of sugar!
We are all doomed!!!