Concern About Hurricane Damage Are Bullish For Sugar
IFC Markets | Sep 08, 2017 02:25AM ET
Hurricane damage concerns are bullish for sugar prices
Concerns about damage to sugar cane fields in Caribbean and Florida are bullish for sugar prices. Will the sugar price continue rising?
On the daily timeframe SUGAR: D1has been retracing higher after hitting 19 month low in early June.
- The Donchian channel indicates no trend yet: it is flat.
- The MACD indicator is bullish: it is above the signal line and the gap is widening.
- The Parabolic indicator gives a buy signal.
- The stochastic oscillator is rising but hasen't reached the overbought zone yet.
We believe the bullish momentum will continue after the price closes above upper boundary of Donchian channel at 14.81. This level can be used as an entry point for placing a pending order to sell. The stop loss can be placed below the fractal low at 14.1. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (14.81) without reaching the order (14.1), we recommend cancelling the position: the market sustains internal changes which were not taken into account.
Summary of technical analysis:
Position Buy
Buy stop Above 14.81
Stop loss Below 14.1
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.