• Sugar reversed from key resistance level 18.00
• Likely to fall to support level 16.73
Sugar recently reversed down from the key resistance level 18.00 (former top of the previous intermediate impulse wave (1) from last month) – strengthened by the upper daily Bollinger Band. The downward reversal from the resistance level 18.00 created eth daily Dark Cloud Cover candlesticks reversal pattern – which stopped the previous minor impulse wave 3 – which belongs to the intermediate impulse wav (3) from last month.
Given the worsening risk sentiment seen across the commodities markets today and the bearish divergence on the daily Stochastic indicator – Sugar can be expected to fall further toward the next support level 16.73 (low of the previous medium-term correction (2) from the end of April).