Sugar Prices Are Trending Up. How Much Higher Can They Go Here?
See on the daily bar chart for October sugar futures that prices are starting to trend up. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bullish posture as the blue MACD line is above the red trigger line and both lines are trending higher.
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Fundamentally, sugar prices are being supported by reduced production in major world growing regions, such as India and Thailand, due to adverse weather like drought. Rising global demand is also a price-friendly element for sugar futures.
A move in October sugar futures above chart resistance at this week's high of 16.74 cents would give the bulls more power and it would also become a buying opportunity. The upside price objective would be 18.50 cents, or above. Technical support, for which to place a protective sell stop just below, is located at 16.00 cents.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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