NY sugar to fall to 20.13 cents

SINGAPORE: New York Oct. sugar is expected to fall to 20.13 cents per bushel, as it has cleared a support at 20.43 cents.

The support was provided by the 23.6 percent Fibonacci retracement on the uptrend from the Aug. 3 low of 18.86 cents to the Aug. 8 high of 20.92 cents. The next support will be at 20.13 cents, the 38.2 percent level, a break below which could open the way towards a lower support at 19.88 cents, the 50 percent level.

A break above 20.43 cents, now a resistance, could lead to a gain into the range of 20.62-20.78 cents, formed by the 14.6 percent and the 7 percent levels.