Thursday, January 28, 2016

Daily Chart of Sugar: SELL

As you can see in the chart below sugar price formation has turned bearish. With price testing support once again we could very well see another bounce before a breakdown. Also, with Valentines just around the corner there could be some speculative buying in sugar in anticipation of an increase in demand.

We have seen some strong rallies the second half of February the last few years but not enough to call it any type of tradable trend if you ask me. And with REAL sugar not being used in anything anymore after being replaced with the fake chemical sweeteners it kind of voids the need for sugar during Valentines Day making it a wash.

Trading Conclusion:
In short, sugar looks poised and ready for a breakdown in price to test the $12.50 level over the next month.

No comments:

Post a Comment