NY sugar to retest support at 19.16 cents

SINGAPORE: New York Nov. sugar is expected to retest a support at 19.16 cents per lb, a break below which could cause a loss to the next support at 18.80 cents.

The contract is riding on a wave C, the third wave of a three-wave cycle from the June 30 high of 21.22 cents. This wave is capable of traveling to 18.80 cents, its 100 percent projection level.

A Fibonacci retracement on the uptrend from the June 24 low of 18.53 cents to 21.22 cents reveals a support at 19.16 cents, the 76.4 percent level, which has temporarily stopped the fall.

The bounce caused by the support may end in the narrow resistance zone of 19.48-19.56 cents, formed by the 61.8 percent projection and 61.8 percent retracement levels.