Sugar Bulls Faltering at Long Term 76.4% Level

The Commodity Specialist view - Following the sharp 2010 drop back in Sugar the subsequent recovery has seen new highs which have tested a long term Fibonacci level. We currently await a better reaction around here but, so far, the market is finding resistance.

• SUGAR 11 - MONTHLY CONTINUATION CHART: The bull move has reached the long term 34.75 76.4% recovery level where we await better reaction –s/term resistance is currently apparent here.
• SUGAR 11 - DAILY CHART MAR-11: This year’s brief new high followed by fresh weakness keeps the technical picture uncertain, with the long term 76.4% resistance (above) still having an effect. The first negative sign here would be a drop through the 29.50 30-Dec low. But more key is dual support from the channel base projection and current 38.2% pullback at 27.85. A break of this support area would herald a more prolonged pullback phase.

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