Commodity chart of the day
Daily Sugar
(Click to enlarge)
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.
Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
