Sugar futures have slipped into a narrowing Channel Down chart pattern, recently testing what may prove to be a final low in the downtrend. Autochartist has illustrated the key support and resistance provided by the Channel Down formation, shown here on the 240-minute chart.
This pattern shows has established an exceptionally strong trend in the market, confirmed by the Initial Trend reading of a full 10 bars. The overall Quality ranks the channel at 7 bars and may strengthen on a confirmed retest of resistance.
The swing low near 23.50 cents found buyers once again to carry the price back inside the channel A move higher to test the 24.50 cent level is now anticipated, though the advanced maturity of this trend will keep traders watching for indications of a directional breakout. A move above the upper trend line or below the bottom trend line would signal a potentially major trend shift. Such a move will likely generate a price forecast on Autochartist on both short-term and long-term charts. Meanwhile, trading swing highs and lows inside the range has been a consistently reliable approach to positioning in the sugar futures since the inception of this Channel Down pattern.
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