• Sugar reversed from resistance zone
• Likely to fall to support level 19.55
Sugar continues to fall after the price reversed down from the resistance zone lying between the multi-month resistance level 20.35 (which has been steadily reversing the price form the middle of August) and the upper daily Bollinger Band. The downward reversal from this resistance zone created the daily candlesticks reversal pattern Shooting Star – which started the active correction (ii).
Given the strength of the aforementioned resistance zone and the bearish sentiment seen across the global commodities markets today, Sugar can be expected to fall further toward the next support level 19.55 (previous resistance level from September, top of wave (b)).