SUGAR HIGHS AND HOW I LOVE THEM
According to the LAWG647 Model Sugars the closing weekly prices for Sugar over the next three weeks will be significant and here is why.
According to the LAWG647 Model if March Sugar closes at or above 2015 on Friday (it is a weekly model) the longer term trend turns higher. If March Sugar fails to turn higher on Friday the trend turning price for Friday, February 3 is at or above 1984, and then on Friday, February 10 the needed price is at or above 1912. As you can see the values needed to reverse the trend to bullish are getting closer to present values over time, or as I like to say running to a confrontation of trends. But there is more…..
What happens if Sugar fails to reverse the trend to bullish? Given how close the reversal prices are to present values it is my opinion that should Sugar fail to turn bullish the odds favor a major downward move.
There are fundamental reasons that also support the potential trend change scenario such as Brazilian weather and an expected reduction in Indian Sugar production.
What to Do?
I suggest looking for levels to buy being mindful of above weekly closes needed to needed to confirm the bullish trend change.
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.