SUGAR Technical Analysis | SUGAR Trading: 2019-11-15 | IFCM UK
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SUGAR Technical Analysis - SUGAR Trading: 2019-11-15

US sugar shortage possibility bullish for sugar price

Bad weather raises possibility of sugar crop shortage in US. Will the sugar prices continue gaining?

Bad weather has raised the possibility of sugar crop shortage in US. Beet producers Western Sugar Cooperative and United Sugars Corp declared force majeure (meaning company is unable to meet its commercial commitments due to unforeseen events) as freezing temperatures hit the northern United States. Cold weather is also weighing on sugarcane growers in the south, according to World Weather Inc. Possible sugar shortage in US is bullish for sugar prices.

SUGAR above MA(200) 11/15/2019 Technical Analysis IFC Markets chart

On the daily timeframe the SUGAR: D1 is above the 200-day moving average MA(200) which is falling.

  • The Parabolic indicator gives a buy signal.
  • The Donchian channel indicates no trend: it is flat.
  • The MACD indicator gives a bullish signal: it is above the signal line and the gap is widening.
  • The RSI oscillator is falling to 50 level.

We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 12.91. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower Donchian bound at 12.30. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (12.30) without reaching the order (12.915), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

OrderBuy
Buy stop Above 12.91
Stop loss Below 12.30

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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