BEARISH ON THE US SUGARBearish clues:
- Triangle , breakdown with a strong bearish candlestick.
- Below the neutrality zone on the Relative Strength Index (RSI < 50).
- Breakdown of the 100 Exponential Moving Average , which was a good support.
- Breakdown of the Modified Pitchfork.
Fundamental news: (from Reuters)
- The supply minister of Egypt released on November 29, 2021 that " sugar reserves were sufficient for 3.5 months ".
- Looking further ahead, Rabobank expects raw sugar to average 20.80 cents in the third quarter of next year as the sugar market records a deficit of 2.3 million tonnes by the end of the 2021/22 season , following a deficit of 1.2 million tonnes in the 2020/21 season.
- Rabobank said ethanol prices will remain elevated on the back of strong global energy prices, tempting cane mills in top producer Brazil to produce more of the biofuel at the expense of sugar.
Objective:
My objective is the Fibonacci retracement level of 50%, at $17.69. Next objective is $16.98: support zone + Fibonacci retracement level of 38.2% + range of the Modified Pitchfork
ALWAYS WAIT FOR THE CLOSE OF THE CURRENT CANDLESTICK
Feel free to share, comment and give your opinion if it is constructive ;)
DISCLAIMER: This is not investment advice
