Agricutural Commodities Are Turning and Sugar May be Next

Back on June 13 in Signs of A Coming Turn Higher in Commodities the Australian and Canadian Dollar were giving clues to a commodity turn around. In the two weeks since, that has played out in spades in the agricultural space with Coffee, Corn, Wheat and Soybeans all moving higher (all charts on chart.ly here and pinterest). Now it may be time for Sugar. Take a look.

The weekly chart above for Sugar ($SB_F, $SGG) above has several sings of a turn around. First the Relative Strength Index (RSI) has bounced off of the technically oversold level and is rising. The Moving Average Convergence Divergence indicator (MACD) is also improving and heading toward a bullish cross. Also, the Volume peaked just as it hit bottom and is starting to find support. To confirm the whole package higher I would like to see a price move over both the 20 week Simple Moving Average (SMA), equivalent to the 100 day SMA, and the 200 week SMA, both near 0.22. Keep an eye on this commodity as the next to take off.

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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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