SINGAPORE: New York October sugar may retest a support at 19.16 cents per lb, as it could have completed a bounce triggered by this barrier.
The support is provided by the 76.4 percent Fibonacci retracement on the uptrend from the June 24 low of 18.53 cents to the June 30 high of 21.22 cents.
The bounce from the July 18 low of 19.13 cents seems to have ended at 19.69 cents, the 50 percent Fibonacci projection level of a downward wave C, which the third wave of a three-wave cycle from the June 30 high of 21.22 cents.
This wave is capable of travelling to 18.80 cents, its 100 percent projection level, which will be targeted once sugar breaks the support at 19.16 cents.
A break above 19.69 cents could lead to a gain limited to 19.88 cents, the 50 percent retracement level.
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