SINGAPORE: New York Oct. sugar may break a support at 19.16 cents per lb and fall more to the next support at 18.90 cents, as suggested by its wave pattern and a Fibonacci projection analysis.
The support is provided by the 76.4 percent Fibonacci retracement on the uptrend from the June 24 low of 18.53 to the June 30 high of 21.22 cents. The bounce caused by this support seems to have ended at 19.69 cents, the 50 percent Fibonacci projection level of a downward wave C, which is the third wave of a three-wave cycle from 21.22 cents.
This wave may eventually travel to 18.80 cents, the 100 percent level. Before reaching this level, sugar has to overcome a barrier at 18.90 cents, the 86.4 percent retracement.
A further bounce from the current level may be limited to 19.48 cents, the 61.8 percent projection level.
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