SUGAR closes lower for the 2nd day in a row
Sugar (SUGAR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SUGAR ended the week 5.3% higher at 10.93 after edging lower $0.05 (-0.46%) today. Trading up to $0.17 lower after the open, the contract managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on Tuesday, SUGAR gained 3.13% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (SUGAR as at May 22, 2020):
Friday's trading range has been $0.34 (3.14%), that's below the last trading month's daily average range of $0.41. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SUGAR.
Prices are trading close to the key technical resistance level at 11.01 (R1).
Though the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might speed up should prices move above the close-by swing high at 11.32 where further buy stops could get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Sugar. Out of 375 times, SUGAR closed lower 52.80% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.93% with an average market move of -0.28%.
With four out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are WHEAT losing -1.36% and COFFEE closing -1.1% lower. On the flipside the best performers have been NATGAS closing 1.5% higher and SILVER gaining 1.4%. Read more