Sunday, December 14, 2014

SGG Sugar ETN Weekly Chart Downward-Sloping Channel Oversold Falling Wedge Positive Divergence

Sugar has not been sweet for traders. Instead, commodity traders long sugar have severe tummy aches and reach for the Pepto-Bismol daily. The beating is severe but sugar may have its day in 2015. Keystone is contemplating the prognostications for next year and may select sugar as his fave commodity. Last year, coffee was the fave and JO exploded higher from the get-go. For 2015, SGG and CANE are worth watching (note the clever ticker symbol as in 'cane' sugar and sugar'cane'). SGG price is currently moving through the downward-sloping channel now at the lower trend line.

SGG is set up with positive divergence across all indicators and the daily chart is possie d as well. The oversold conditions and falling wedge are also bull-friendly. The RSI and MACD (red liens) wanted to see lower lows in price  after the September low and they received those lows over the last month now creating universal possie d. SGG is thinly traded as is CANE and both are knife-catches so caution is required and allowance should be made to scale-in if price continues to drop. Price violated the lower standard deviation band so a move back to the middle band, at a minimum, should occur. Instead, price rolled back over to the downside. The middle band at 43 and falling is in play.

The expectation is for sugar to base and probably be a strong success story as 2015 plays out. Keystone opened a long position in SGG on Friday. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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