October sugar futures (SBV25) current a shopping for alternative on extra worth energy.
See on the each day bar chart for October sugar futures that costs have simply hit a two-month excessive and are beginning to pattern greater once more. See, too, on the backside of the chart that the shifting common convergence divergence (MACD) indicator can be in a bullish mode, because the blue MACD line has simply crossed above the crimson set off line and each strains are trending greater. The sugar bulls have the general near-term technical benefit.
Basically, sugar costs have been rising as a consequence of lowered international manufacturing and higher international demand. Droughts in main sugar-producing areas like India and Thailand have lowered sugar crop yields.
A transfer in October sugar futures above chart resistance at this week’s excessive of 17.05 cents would give the bulls extra energy and it might additionally change into a shopping for alternative. The upside worth goal could be 18.50 cents, or above. Technical help, for which to position a protecting promote cease just under, is positioned at this week’s low of 16.32 cents.
IMPORTANT NOTE: I’m not a futures dealer and don’t handle any buying and selling accounts aside from my very own private account. It’s my purpose to level out to you potential buying and selling alternatives. Nonetheless, it’s as much as you to: (1) determine when and if you wish to provoke any trades and (2) decide the scale of any trades you might provoke. Any trades I talk about are hypothetical in nature.
Here’s what the Commodity Futures Buying and selling Fee (CFTC) has mentioned about futures buying and selling (and I agree 100%):
Buying and selling commodity futures and choices just isn’t for everybody. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Earlier than you make investments any cash in futures or choices contracts, you need to take into account your monetary expertise, targets and monetary sources, and understand how a lot you possibly can afford to lose above and past your preliminary cost to a dealer. It is best to perceive commodity futures and choices contracts and your obligations in coming into into these contracts. It is best to perceive your publicity to danger and different points of buying and selling by totally reviewing the chance disclosure paperwork your dealer is required to present you.
On the date of publication, Jim Wyckoff didn’t have (both instantly or not directly) positions in any of the securities talked about on this article. All data and knowledge on this article is solely for informational functions. This text was initially revealed on Barchart.com
