Sunday, October 11, 2015

SGG Sugar Daily Chart

Sugar is sweet. Keystone highlighted the falling wedge, oversold conditions and possie d (green lines) forecasting a strong move higher, which occurs. Sugar is a favorite commodity this year of Keystone's and it appears it finally shows signs of life. Keystone took profits on the trade and exited but plans to reenter on pullbacks. The weekly chart continues to display long and strong indicators.

On the daily above, the histogram and stoch's are negatively diverged wanting price to pull back for a rest. The other indicators, however are long and strong wanting a higher high in price after any pull back. The overbot stochastics also desire a pull back. RSI is overbot but still heading higher. The expectation would be for a drop then further upside. The 31 level appears an attractive entry area to reestablish a long trade.

If a long term trader and more patient with stocks, SGG can likely simply be held through the end of the year and would be expected to be higher in the coming weeks and months. 35 is an upside target after which price may pull back for a rest again but then continue higher after that. Sugar will likely remain a sweet story through 2016. CANE is another ETF but very thinly traded even more so than SGG. Other sugar plays should also be explored. 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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