Sugar Market Profile and Commodity Analysis

Sugar has been through the downtrend ever since it created a lower high price of 0.32358 in July of 2011. It caps it off an extraordinary bull rally which found the marketplace ascend from $0.10 by the end of 2008 to the ten-year high of $0.36353 print in February of 2011. At this stage, the market industry began to demonstrate signs of lack of strength. Very few would realize that it was the beginning of a lengthy and painful bear market slide.

The current sugar price level of $0.10 is an extremely crucial price point for product Bulls happen to be protecting this price level ever since June of 2008

As a matter of inescapable fact, this commodity is back where it began ten years ago given that the market is trading barely above $0.10. To a newcomer, this price action may likely suggest that commodity is in fact without hope. This decline to this price level could offer an unusual opportunity for a significant bounce.

A Brief Sugar Market Glance

The current sugar price level of $0.10 is an extremely crucial price point for product Bulls happen to be protecting this price level ever since June of 2008. .

The market has had been able generating reversal each time it reached this level. Technical analysis reveals that bulls will likely do the very same thing yet again

A brief glance at the daily chart demonstrates this commodity is bouncing off the inner Sugar Dip $0.0998, as it trades above its long-term Key Support as well. The anticipated rise in demand around this level will help bulls sustain the Key Support in addition to creating the push necessary to break free from the major completion outer Sugar Dip.

Except for a strong bullish move, we predict commodity to rally to the Key Resistance $0.1084. At this stage, bears will more than likely declare their dominance and protect the downtrend resistance. The touch of the Key Resistance will set off the resumption of the downtrend.

Bulls definitely will just as before making an effort to defend $0.10 level, however, the added in pressure via the new downward spiral will be more than enough to take out the Key Support. This will press the panic button and set off a waterfall episode that could send sweet substance right down to its historical outer Sugar Dip of $0.08955 level. With those prices, commodity would have shed more than 65% of its value within the ten-year high.

Nevertheless, we expect that $0.08955 will be the last conclusion of this long, painful downtrend. This kind of hefty losses will in all probability embolden bottom hunters and bargain shappers. Within the ashes, commodity will undoubtedly shape a bottom part which would function as the bottom of a major bull rally.

Bottom Line

Sugar currently is stuck in a multi-year downtrend. Nevertheless, the decline to the long-term outer Suger Dip $0.08955 area produces the potential for short to medium term bullish action. Following this bounce, we expect to see the commodity market to continue the downtrend right up until extends to its historic new support.


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