SGG Sugar ETF Daily Chart Sideways Channel

Sugar is sweet in yesterday's trading as the broad stock market tumbles lower. SGG gains +0.3% as the markets collapse. Keystone highlighted the bottom in SGG due to the falling wedge pattern, oversold conditions and positive divergence (green lines for the indicators) on both the daily and weekly charts. A bounce was expected (green arrow) which occurs. Price now staggers sideways through the brown channel at 25.5-28.0. A breakout either way from these levels is very key.

Sugar is bouncing up and down creating big gaps as the broad market bounces violently due to higher volatility. The purple circle shows an island reversal pattern. Price gapped lower from 27 to 26.3 and lower which created the island; then price recovers to 26.3 and boom, gaps up to 27 and higher creating the textbook island reversal. The 20-day MA crosses above the 50-day MA which is encouraging for the long side. SGG is testing the overhead resistance at the 20-week MA at 28.04.

Keystone went long SGG and the position is profitable; will likely let it sit there a while. SGG should move sideways with an upward bias into the end of the year so sugar is a potential area to park money amidst the market tumult. CANE is another sugar play (it gained +0.2% yesterday) but it is extremely thinly traded moreso than SGG so be mindful of the low liquidity. 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.