Sugar at Resistance
Sugar (Sugar ETF) is at a 4 year resistance line and is making a potential key reversal bar. On an intermediate degree the prices have failed below key trendline supports. A minimum retracement should see prices push lower till 0.382 Fibonacci levels at 21.5.
Unlike Sugar which is showing signs of exhaustion, both Grains and Coffee are still in an upward trending channel. We need a price confirmation below respective channels. Coffee is testing the top of a multiyear channel, while grains are testing a multiyear channel support. Any reversal now could be the start of at least multi week negative trend on both grains and coffee.
The negativity of soft’s and grains could challenge the agricultural commodities uptrend and also should strengthen the topping commodity case. Jiseki cycles are negative on Sugar and all this topping case comes when Coffee is creating 14 year high news. A top performer, touching channel highs is more reason for us to look at reversals rather than accumulations.
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