Sugar signals buy opportunity

April 24, 2015 09:54 AM

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Sugar has a buy signal on my daily chart today. This is the second buy signal I have had since the trend changed to about 2 weeks ago. My indicators suggest that sugar still is in a longer term down trend and is just below the 50-period moving average witch is pointed down.

Sugar needs to close above $13.34 then my indicators suggest sugar can go to $14.00. The weekly chart has a bottoming formation. This recent correction probably is attributed to India considering a sugar Stock pile to support prices. This may be the place to buy I would like to see July sugar stay above $12.45 and close above $13.43 to have this uptrend continue. 



Bullish Highlights

1.  My daily chart has 2 recent buy signals

2. M A C D almost crossed down but have stayed up (bullish)

3. Sugar has had a correction and has a fresh buy signal

4. Both daily and weekly have bottoming formations

5. Asia and Australia have had well below average rainy season that could affect sugar crop

 

 

 

About the Author

Larry Baer is a senior broker with Zaner Group. He has been in the futures industry for 30 years and his prior experience includes a membership at the Chicago Board of Trade.  During his 10 years on the trading floor, he traded and managed a futures and options operation, which serviced both retail and institutional clients.  He is also the author of “The Trader's Tool Box.”  He may be reached at lbaer@zaner.com and  312.277.0112.