Is Now The Time To Go Long Sugar?

Sticking with our commodities theme for 2014, I think Sugar is setting up in a really interesting way. Over the past few months I’ve been focused on the price action in Coffee, Corn, Natural Gas, Crude Oil, Precious Metals and the overall equal-weight commodities index (feel free to click on those links to see what I was thinking at the time). But today I want to focus our attention on the price of Sugar, because the setup is right up my alley. Let me tell you why….

Here is a weekly chart of Sugar futures going back to the 2010 rally. We can see a nice falling wedge well-defined by these two converging downtrend lines:

The next chart shows weekly bars briefly breaking down below the July lows followed by a quick reversal to the upside. Also notice prices breaking out above the 40-week moving average this week:  (more)
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