• Sugar reversed from resistance area
• Likely to fall to support level 17.75
Sugar recently reversed down with the daily Bearish Engulfing reversal pattern from the resistance area lying between the key multi-month resistance level 18.72 (which stopped the sharp uptrend in February) and the upper daily Bollinger Band. The downward reversal from this resistance area stopped the previous impulse wave (iii) from the middle of July. This Bearish Engulfing follows the earlier Dark Cloud Cover candlesticks reversal pattern.
Given the strength of the aforementioned resistance area and deterioration of the risk sentiment as seen across the commodities markets today (on China equities selloff), Sugar can be expected to fall further toward the next support level 17.75 (former top of the previous impulse wave (i) from the middle of July).