Sugar False Break Low (D)

I am expecting a rally in the sugar price as outlined in my recent article, Sugar Price To Sweeten Up. Well, it looks like price may finally be putting in a low which should lead to this expected rally.
 
Let’s check out the situation using the daily chart.
 

SUGAR DAILY CHART 

The low occurred last week at $12.57 on Friday 13th. (That date sounds familiar). I have drawn a horizontal line at the previous swing low set a couple days before that and this new low reeks of a false break low set up.
 
The Parabolic Stop and Reverse (PSAR) indicator shows a bearish bias but I suspect this last move down is a fake out move. Certainly, price trading back up and busting the dots on the upside would look very bullish now.
 
The Bollinger Bands show the low traded a bit below the lower band which is a common feature found at solid lows.
 
The Relative Strength Indicator (RSI) and Stochastic indicator are both showing a triple bullish divergence at this last low. Nice.
 
The Moving Average Convergence Divergence (MACD) indicator looks to be threatening a bullish crossover.
 
The Momentum indicator shows the downtrend momentum has run its course and is now starting to trend up.
 
Summing up, I believe conditions are now very suitable for a significant price rally.
 
 

Disclaimer

All information contained in this website is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. Put simply, it is JUST MY OPINION.

JoomShaper