NY sugar still targets 22.34 cents

SINGAPORE: New York March sugar still targets 22.34 cents per lb, as it failed to break a support at 21.26 cents.

The support is provided by the 23.6 percent Fibonacci retracement of the uptrend from the Sept. 24, 2015 low of 12.05 cents to the Sept. 29 high of 24.10 cents. This barrier has triggered a bounce, which could be strong enough to extend to 22.34 cents.

Wave pattern suggests that the drop from 24.10 cents has been driven by a wave (4), the fourth wave of a five-wave cycle from 24.10 cents. A break below 21.26 cents will signal the extension of this wave towards 20.04 cents, the 38.2 percent Fibonacci retracement of the uptrend from the Feb. 19 low of 13.48 cents to 24.10 cents.