Sugar futures completed an impressive Triangle chart pattern that has been building on the 240-minute time frame for the last several weeks. The market tripped a buy signal after breaking through top side resistance at 24.70 cents per pound, having since pulled back slightly to retest the breakout level. Autochartist has projected a target based on this price action which is encouraging for a move higher.
The minor pullback after the initial breakout makes for an easier entry to capture the potential upside move, however the low momentum and lack of immediate follow-through should keep bullish traders wary of short-term weakness. The overall strength of the pattern makes it a worthwhile candidate despite the soft buying action seen so far.
If the price turns higher in Tuesday's session, the trajectory will remain on track for a move to the projected price target of 25.30 cents per pound. A move to that level is likely to trigger further bullish signals on shorter term time frames in the Autochartist platform. A slide back below the triangle's key support near 24.00 cents per pound would negate the signal, which should allow for tight stop-loss orders on long positions entered at the current level.
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