Sugar Bounce Getting Underway
26 May 2011
SUGAR 11 -MONTHLY CONTINUATION CHART
There was a clear negative reaction after the test of the long term76.4% retracement.
The downmove has now got close to the level of the old 19.73 2006 high, as well as a bull channel base projection not far beneath.
DAILY CHART -Jul-11:
In our 17thMar Update on Sugar we said that the bear picture should have the power to extend to the 61.8% pullback. On the Jul-11 chart this nicely coincided with the Nov-10 low area.
There is now a good prospect of a better recovery phase getting underway.
Note the last downleg segment from the 24.00 area coincides with the 38.2% bounce -temporary resistance would be likely here. Higher resistance of interest comes from the rising return line around 25.50 currently.
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