SGG Sugar ETN Weekly Chart

Sugar receives the positive divergence bounce from the indicators on the weekly chart above and daily chart. The buying is robust last week but not yet as strong as the selling volume seven weeks ago. Price may target the thin brown lines in the right margin representing the prices for the large selling week volume in early July. There is a large juicy gap at 28.5-29.20 that will need filled.

Sugar was trying to stabilize this year and base but once the overall collapse in global commodities occurred nothing was spared all commodities were bludgeoned lower. Coal and sugar are Keystone's favorite commodities this year and both are beaten. The green lines show the positive divergence that forecasts the recovery bounce which occurs. The RSI is trying to create a higher high which would be bullish. Price is extended below the moving averages requiring a mean reversion higher.

The expectation is for sugar to base sideways and finish the year with a sideways to sideways higher trend. The monthly chart is very favorable to a base at the current price levels so it appears the worst is over for sugar. Keystone opened a position in SGG a few days ago and will likely stay long into year end. CANE is another sugar play although very thinly traded moreso than SGG. Sugar may be one of the very few hiding places available if the overall stock market remains sluggish through the end of the year. Ag-related commodities and stocks may be showing signs of life going forward. 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.