Tuesday, October 5, 2010

Sugar Technicals from Reuters

SINGAPORE, Oct. 5 (Reuters) - New York sugar is expected to resume an uptrend by rising into a range between 23.80 cents and 24.28 cents per lb, as a bottom could have formed at the Monday's low of 22.49 cents.

The drop from 27.17 cents is classified as a wave (4) retracement which is expected to end around the lower-degree wave "4" bottom at 23.52 cents.

But it seems the wave (4) has traveled slightly lower to 22.49 cents, close to 22.26 cents, the 61.8 percent Fibonacci retracement level on the rise from 19.23 cents to 27.17 cents.

The following rebound will first arrive at 23.80 cents, and then continue to 24.28 cents - the 38.2 percent Fibonacci retracement level on the fall from 27.17 cents to 22.49 cents.

Support is at 23.82 cents, a fall below which will be limited to 22.26 cents. 

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