• Sugar reversed from resistance level 18.15
• Likely to fall to support level 17.00
Sugar recently reversed down from the resistance zone lying between the pivotal resistance level 18.15 (previous monthly high from May) and the upper daily Bollinger Band. The downward reversal from this resistance zone created the daily Bearish Engulfing – which stopped the previous short-term impulse wave 1, which belongs to the intermediate impulse wave (3) from the middle of June.
Given the strength of the aforementioned resistance zone, worsening risk sentiment across the commodities markets today – Sugar can be expected to fall further toward the next round support level 17.00 (which is the target price for the completion of the active correction 2).