Sugar finding its sweet spot
Category: Sugar
(Futures Mag) – Last week March 2013 Sugar opened at 18.32 and closed the week at 18.38. This coming week’s bull targets are 18.63 and 18.89, bear targets are 18.09 and 17.81.
Looking at the daily chart you can see that the drop that started on Jan. 3 from 19.70 is picking up strength as ADX climbs to 27. MACD has dropped divergence from below the signal line and Stochastics have corrected from oversold territory with the help of a 38-point move up this past Tuesday. The four-day EMA is threatening to cross over the nine-day EMA. It looks like that could take place right at 18.50.
On the three-year weekly chart, you can see back in May 2010 sugar’s price action touched 13.00, but never closed below this price point. For a few weeks sugar hung around 14.00 as a low. Look at the drop from February 2010 to May 2010. 30.00 dropping to 14.00 is an almost $18,000 drop.
