Daily Commodities Update: Sugar

A significant technical development on the World Sugar futures chart bears watching closely in the near term for a possible rally. This market has been trading within a very large Falling Wedge chart pattern that began during March, and now measures over 140 bars in length as measured on the 240-minute time interval shown below.

This week’s price action- firm against the backdrop of very strong commodities prices overall- set the stage for a soft breakout of resistance from the Falling Wedge pattern. While the breakout came on low momentum, it also initiated very close to the apex of the wedge.

This may bring the wedge to a completion, and the breach of support has triggered the projected price forecast for nearby Sugar futures to reach a higher price level between 27.51 and 30.37 cents per pound if the rally continues.

As Sugar has been in a sustained correction after achieving multi-year high prices above 30 cents, a successful retest of the projected price level may confirm the weakness as a minor price correction in a major bull market, with much higher prices possible once new highs have been established.

(Source: http://www.commoditiesmansion.com/general-commodities/daily-commodities-update-sugar-5/)