Summary:
- Bulls try to enter the bull market
- Sugar prices approach the 100WMA
- Sugar prices has again closed to the supply zone
Sugar prices have rebounded sharply from the summer/autumn last year. The move has been mainly driven by appreciation of the Brazilian real in the wake of presidential elections as well as the huge net short position according to the CFTC data. After a corrective movement in last 2018 and a comeback to the 50WMA sugar prices have begun heading higher. The price has already approached the resistance nearby $13.3. This level constituted a tipping point in the past. This level is also underpinned by the 100WMA.
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Source: xStation5
Looking at the daily time frame one may notice that the 61.8% retracement is localized nearby the crucial resistance level. If the price moves through this levels, it could push the price toward the highs from the second half of 2018. The pivotal support is the low from December. If the price manages to stay above this level, there scope to see a longer-term bull market in the sugar market.
Source: xStation5
In the short-run one may notice that sugar prices are moving off the resistance and they have already approached the 23.6% retracement of the last bullish wave. Note that the latest impulse was robust, so the consolidation a tad below $13.3 is on the cards. Other key levels are $13/13.05 and $12.9, the latter is also supported by the 38.2% retracement.
Source: xStation5
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