Courtesy of Chris Kimble.
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Sugar has experienced some sour times over the past couple of years, as it has declined nearly 50%. Could these declines be creating a “sweet opportunity?” Possible!
Sugar has spent the majority of the past 30-Years inside of rising channel (1). The 50% decline over the past 24-months has it testing the bottom of this long-term rising channel at (2). At the same time it is testing channel support, it is testing 2015 lows as well.
No doubt the trend remains down and should Sugar fail to find support at (2), its bear market trend will remain solidly in play and could pick up downside momentum.
Commodity traders want to keep a close eye on Sugar in case it would happen to experience a counter-trend rally and break above resistance at (3). If it does, it would surprise the majority of traders, as bullish sentiment according to Sentimentrader.com stands at just 23% bulls.
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