Sugar (Sugar No. 11 - May 2022) set to continue the trend

21 paź 2021I firmly believe raw sugar futures are set to continue their upward trend seen for months now. While they have consolidated for a time and recently dipped below temporary support, which could be mistaken for a trend breakout, I believe we are simply seeing a sell-off as a reaction to the futures having floated highly above the trendline for a long time. As pointed out on the chart, the recent sell-off is of a magnitude similar to earlier sell-offs, and furthermore, we are resting firmly on the trendline. However, the risk of a trend breakout is significant and I recommend a tight SL at 18.45. On the other hand, should my hypothesis prove right, enjoy the ride and take profits at your own discretion.