Sugar Technical Analysis Summary
Buy Stop։ Above 20,3
Stop Loss: Below 18,3
Sugar Chart Analysis
Sugar Technical Analysis
On the daily timeframe, SUGAR: D1 came out of the downtrend and the triangle. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if SUGAR: D1 rises above its most recent high of 20.3. This level can be used as an entry point. Initial risk cap is possible below the Parabolic signal, the lower Bollinger band, the 200-day moving average line and the last 2 lower fractals: 18.3. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we are changing the potential profit/loss ratio in our favor. The most cautious traders after making a trade can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (18.3) without activating the order (20.3), it is recommended to delete the order: the market is experiencing internal changes that were not taken into account.
Fundamental Analysis of Commodities – Sugar
In Brazil, the sugarcane crop is expected to decline due to bad weather. Will the SUGAR quotes continue to grow?
Earlier, the Conab agency predicted a decrease in the volume of sugar cane processing in Brazil, in the agricultural season 2021/2022, by 13% y/y, to 525 million tons. This is the lowest level in the last 10 years. At the same time, sugar production may amount to 33.9 million tons, which is 17.9% less than the previous season. Now the Covrig Analytics agency expects a reduction in sugar production in April 2022, in Brazil, by 30% y/y, to 1.55 million tons. According to him, against the backdrop of high world oil prices, more than 70% of Brazilian sugar cane will be processed into biofuel (ethanol). Unica reported a 16.2% decrease in Brazilian sugar production between October 2021 and February 2022 compared to the same period in the previous season (2020/2021).