Sugar looking for a sweet landing

Market Pulse: August 27

Last week, October 2012 sugar futures opened at 20.25¢ per lb. and closed at 19.58¢. More impressive is sugar's downward trend in August, as it opened at 22.59¢. Looking at the daily chart you can see sugar taking off from 19.50¢ mid-June, hitting the high of 24¢ in mid-July and landing once again at 19.50¢ this past Friday. A nice ride up and down if you caught it.

The technicals on the daily chart show sugar in a very strong trend down with ADX at 55. As you can see the last time ADX was at 55 it highlighted a very strong trend up a little over one month ago. MACD is bearish being below the signal line and the zero on the histogram line. Over the past eight trading sessions we do see MACD dropping divergence and Stochastics are in deep oversold territory, entering there on Aug. 6. The red lines on the daily chart are showing where the TS Analyzer at Trends in Futures highlight trade set-ups that we go over in daily updates and videos.

Proceed to Page 2 for the latest COT Data...

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