July sugar (SBN26) futures present a buying opportunity on more price strength.
See on the daily bar chart for July sugar futures that prices are starting to trend higher and on Tuesday hit a three-week high. A bullish double-bottom reversal pattern has also formed on the daily bar chart. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is also in a bullish posture as the blue MACD line has just crossed above the red trigger line.
Fundamentally, sugar prices have been supported amid reduced global supplies from key producing countries like India and Thailand as well as higher production and transport costs due to the war and higher energy prices. Increased demand for ethanol, due to higher crude oil (CLM26) prices, has also shifted sugarcane away from sugar production.
A move in July sugar futures above chart resistance at this week’s high of 14.41 cents would give the bulls more strength and it would also become a buying opportunity. The upside price objective would be 16.25 cents or above. Technical support, for which to place a protective sell stop just below, is located at 13.65 cents.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
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On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
