ICE sugar nears support
Published: 03/10/2010, 8:35:11 AM
ICE Futures US sugar for May delivery on Tuesday hit a fresh five-month low of 20.58 cents a pound. Prices are presently in a steep four-week-old downtrend on the daily bar chart as the bears have the strong technical advantage and are looking for more on the downside in the near term, according to Dow Jones.
Since the Feb. 1 high of 29.00 cents, May sugar futures have fallen by more than 8 cents a pound.
The present downtrend on the daily chart for May sugar is very powerful, technically. The Directional Movement Index overlaid on the daily bar chart for May sugar shows an ADX line reading of 44.33. Any ADX line reading above 30.00 suggests a very strong price trend is occurring in a market.
The sugar market bears are presently also challenging major technical support at the October 2009 low of 20.44 cents, basis May futures. A close below that key price level would produce still more serious chart damage to suggest another solid leg down in prices.
For the sugar market bulls to begin to regain some fresh upside near-term technical momentum the will have to push and close May futures prices above strong technical resistance at this week's high of 22.40 cents.