Raw Sugar (SB) slid almost 2% yesterday (on the continuous contract) on healthy profittaking, forming its 1st red daily candle in 4 days. Significantly, although SB appears to be struggling at ascending wedge resistance (on the daily chart) and vulnerable to breaking wedge support, this wedge is gently upsloping, reducing odds for a retest of the psychologically key .100 whole figure level next week.
Longer term bulls will increasingly seize on any further weakness next week with SB’s current weekly candle having powered decisively above the weekly chart’s descending wedge resistance, reinforcing the major bottoming effort over the past month.
The weekly RSI, Stochastics and MACD are bottomish, but somewhat weighed by the tiring daily RSI and Stochastics. I am looking at entering long in the green zone (of the daily chart), targeting the red zone for Thursday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter)…Click here to read the analysis of Cotton, Natural Gas
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