July sugar (SBN26) futures present a “swing-trade” buying opportunity on more price strength.
See on the daily bar chart for July sugar futures that prices are approaching strong technical support at the November and February lows. This offers a good “swing trade” buying opportunity, as there is a good chance those technical support levels will hold and then reverse the price trend. For more details on the swing-trading method, I wrote a feature report on the matter several years ago. Send me an email at jim@jimwyckoff.com and I’ll email you the feature.
Fundamentally, sugar prices may be poised to rally due to a combination of geopolitical tensions, other raw commodity markets prices on the rise, including energy, and climatic risks that could tighten the current world sugar surplus.
A move in July sugar futures above chart resistance at 14.00 cents would give the bulls some fresh strength and it would also become a buying opportunity. The upside price objective would be 16.00 cents or above. Technical support, for which to place a protective sell stop just below, is located at the February low of 13.34 cents.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
