News this week concerning an improved outlook for the possibility of additional supply from Brazil’s center south region resulted in sugar falling sharply over the past three trading sessions. On the technical front the raw sugar futures contract is testing downward resistance at the 31.35 cents level. A pause and sideways movement seems to indicate that the downward trend may have lost some momentum.
A break above 31.35 cents per pound may indicate a move towards 33 cents. While a failure to move up due to resistance confirmed by a move down below 31.15 cents per lb may see a move towards 29 cents.
Technical trading is a form of trend analysis, independent of fundamentals, which reviews patterns in recent historical prices to forecast future trends.