Commodity chart of the day
In the last two weeks sugar prices have appreciated 15% to gain alongside most agriculture products. That appreciation should have been enough to make some money on bullish plays but my stance now is the sidelines or bearish trade.
Prices failed at the 100 day MA and prices have completed a 61.8% Fibonacci retracement and sugar appears to be overbought as seen on the stochastic. With all three indicators converging at once I think we see prices trade lower in the coming weeks. As long as prices do not close above 22.50 my stance is that prices make their way back under 20 cents/lb.
Trading sugar #11 in October can be done via futures or options.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.