SUGAR Technical Analysis | SUGAR Trading: 2020-02-27 | IFCM
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SUGAR Technical Analysis - SUGAR Trading: 2020-02-27

Sugar Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Below 14,4

Sell Stop

Above 15,4

Stop Loss

Mary Wild
Senior Analytical Expert
Articles 2058
IndicatorSignal
RSI Sell
MACD Sell
MA(200) Neutral
Fractals Sell
Parabolic SAR Sell
Bollinger Bands Sell

Sugar Chart Analysis

Sugar Chart Analysis

Sugar Technical Analysis

On the daily timeframe, SUGAR: D1 broke down an uptrend support line. Now it is moving down from its maximum since November 2017. A range of technical analysis indicators generated signals for a further decline. We don’t rule out a bearish trend if SUGAR falls below its last low: 14.4. This level can be used as an entry point. The stop loss is probably higher than the last two upper fractals, the upper Bollinger line and the Parabolic signal: 15.4. After the pending order opening, the stop loss can be moved following Bollinger and Parabolic signals to the next fractal maximum. This way, we change the potential profit / loss ratio in our favor. After the transaction, more risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in accordance with the trend. If the price overcomes the stop level (15.4) without activating the order (14.4), it is recommended to close the order: market sustains internal changes that were not taken into account.

Fundamental Analysis of Commodities - Sugar

Downtrend world oil prices may cause reduction of biofuel production in Brazil. Will SUGAR quotations decrease?

In Brazil biofuels and sugar are produced from sugarcane. Therefore, in a period of low world oil prices, Brazilian farmers are reducing the production of bioethanol and increasing sugar production. In addition, the weakening of the Brazilian real is also a bearish signal for sugar, which is being traded now near a 2-year high. Brazil is the world leader in sugar production with a share of about 20%. India is the 2nd largest sugar producer in the world and the largest consumer at the same time. The Indian Sugar Mills Association (ISMA) raised its forecast for sugar production in India in the 2019/20 season from 26 million tons to 26.5 million tons. At the same time, the surplus of sugar in 2020-2021 may amount to 6 million tons. The Indian government can encash this volume in the global market.

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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