NY sugar to test support at 19.50 cents

SINGAPORE: New York March sugar is expected to test a support at 19.50 cents per lb, a break below which could cause a loss to the next support at 18.79 cents.

The first support is provided by the 38.2 percent Fibonacci retracement of the uptrend from the Sept. 24, 2015 low of 12.05 cents to the Sept. 29, 2016 high of 24.10 cents.

The current drop also seems to be controlled by another set of Fibonacci retracements of the uptrend from the Feb. 19 low of 13.48 cents to 24.10 cents, one of which is the 50 percent level at 18.79 cents that works as the second support.

Resistance is at 20.04 cents, a break above which may signal the completion of the drop from 24.10 cents.