Sugar is Getting Sweeter

Sugar ($SB_F, $SGG) has been been slowly trending higher off of a bottom in December as is seen in the daily chart below. Will the trend continue? The Relative Strength Index (RSI) has also been trending higher but unable as yet to get over the 60 level and turn bullish. The Moving Average Convergence Divergence (MACD) indicator has also been hovering around the zero level. This has fallen from above so this could also be a bear flag before the next leg lower. Except that the volume is increasing as it drifts up. The view is clarified a little if you move back to the weekly

Sugar, $SB_F

chart. The price has been moving along the bottom rail of a symmetrical triangle. The RSI has also broken through the downtrend resistance and the MACD has been trending higher since November. A positive picture but certainly not screaming to jump in yet. A move over 25 cents looks

Sugar, $SB_F

to be the trigger. The Sugar ETN, iPath Down Jones -UBS Sugar Subindex Total Return ETN, $SGG, is a very different picture. This is breaking out higher with a RSI that is bullish and a rising positive MACD. Is it leading or a false break out, only time will tell. But certainly above 92.50 it looks good for more upside with resistance at 99.45 and then the previous high.

iPath Down Jones -UBS Sugar Subindex Total Return ETN, $SGG

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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