Sugar futures have managed to hold their ground over a key support level during the last several trading sessions. Upside resistance continues to cap gains however, and Autochartist's key level indicator has identified the 25.25 cents per pound level as one to keep a close eye on as the trading week begins.
The key level indicator shows the support on the 240-minute candlestick chart. The narrow range formed during last week's action sets the stage for a directional trade to materialize once the range has been broken. This may translate to a continuation of the move higher after having successfully tested the key level support to spur buying interest. Alternatively, selling pressure entering the market to begin the week may break through the key level support and signal a move lower. The inability for the price to accelerate higher so far increases the prospects for such a pullback, making the key level an important pivot point to determine the direction of the next move. A decline in price would imply a retest of the previous swing low near $23.30 cents per pound. If the price can hold within that range, it may continue to pivot around the key level until a long term trend is established. For further information on this and other Autochartist products, visit our website at www.autochartist.com