Sugar Correction Over (D,W)
Created on Tuesday, 03 May 2016 10:57
Written by Austin Galt
The sugar price recently corrected and I now believe the uptrend may continue so let’s update the daily and weekly charts.
SUGAR DAILY CHART
This chart focuses on the recent action and we can see a sharp correction took place which was expected from previous analysis. However, I was looking for a subsequent lower high before an even greater correction took place. I now doubt this.
The Bollinger Bands show the correction took price down to the lower band. Price is now back at the upper band with the middle band providing support. I suspect we see another test of the middle band support before price takes off higher as it clings to the upper band.
The Fibonacci Fan shows the recent low was at support from the 76.4% angle and is now threatening to blow away resistance from the 61.8% angle.
The recent low clipped the 61.8% Fibonacci retracement level which is a common set up for higher lows.
The RSI is in a strong position. Just look at how price traded the last time this indicator was in a similar position.
The MACD indicator is bullish.
SUGAR WEEKLY CHART
The Bollinger Bands show the recent low at support from the middle band and price has now looks like it is intent on getting back to the upper band.
The Fibonacci fan shows the recent low at support from the 61.8% angle and price has already taken out the 76.4% angle.
I have drawn an Andrew’s Pitchfork which shows the recent low at support from the lower channel line after the previous high found resistance at the middle channel line. I now suspect price will surge back up into the upper channel and new price highs.
The RSI is strong while the MACD indicator is bullish.
So, while an even greater correction is possible, taking all things into consideration, I feel I need to change the shorter term outlook to back to bullish.