NY sugar may test resistance at 19.88 cents

SINGAPORE: New York Oct. sugar may test a resistance at 19.88 cents per lb, as it has broken a lower resistance at 19.56 cents.

These resistances are identified respectively as the 50 percent and the 61.8 percent Fibonacci retracements on the uptrend from the June 24 low of 18.53 to the June 30 high of 21.22 cents.

For the second time, sugar has pierced above a trendline falling from the July 5 high of 21.10 cents, signalling a reversal of the downtrend from 21.22 cents, or at least, an extension of the bounce from the July 18 low of 19.13 cents.

Support is at 19.48 cents, the 61.8 percent Fibonacci projection level of a downward wave C, a break below which could cause a loss to the 76.4 percent level at 19.22 cents.