Sugar Starts To Break Higher
07 May 2009
On the long term charts Sugar has not looked that exciting for many months. From last year’s low it has enjoyed a somewhat choppy recovery, but recently this has been more noticeable and longer term overhead technical levels are rapidly coming into focus.
MONTHLY CHART – CONTINUATION: After finding 76.4% support in 2007 price action on the long term continuation chart settled into a triangular consolidation pattern. There has been a nice bull break from this now, already testing the 61.8% level. We later target the 76.4% 17.00 area.
DAILY CHART – JUL-09: Shorter term, after the break through 61.8% resistance the upmove has picked up momentum, and our s/term Fibo projection around 15.50 has today been tested. Combined with the 15.40 61.8% level on the long term chart it would not be surprising to see a temporary pause in uptrend. Any setback at this stage may not be deep – first support of note is offered by the 14.09 19-Mar high (buyers on modest dips may favour initial stops below here). On this chart the 2008 high was 15.99 which we target in due course, ahead of the 17.00 76.4% area (above).
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