Base in Sugar Now Looks Complete
12 February 2009
After the drop back from last August’s high the Sugar price stabilized around the 10.50 level. From early Dec a recovery has been seen, back to an area of key resistance. An initial break through this suggests a base is now in place, with further bullish implications.
WEEKLY CHART – MAR-09: After a low of 10.44 was established last Oct, a possible Double Bottom base has been forming. The recent break above the 13.00 area signals initial completion of this base. See Daily chart for more detail and targets.
DAILY CHART – MAR-09: The key 13.00 resistance area in fact extended slightly higher, to include a 50% retracement and prior 13.23/27 lows. Whilst the break is marginal at the time of writing, the chart structure does not suggest any bull fatigue to us, and we maintain our previously held bullish stance – - with the added attraction of an extra boost now. Our target now is the 76.4% level just above 14.50, which coincides with an old rising support/return line. Ideally, to preserve current momentum, the 12.39 05-Feb low will stay intact now.
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