NY sugar may drop to 14.21 cents

25 Jan, 2016

SINGAPORE: New York March sugar may drop to 14.21 cents per lb, as indicated by its wave pattern and a Fibonacci retracement analysis.

The contract could be riding on a wave a, the fifth wave of a double-zigzag from the Dec. 4, 2015 high of 15.85 cents.

This wave could eventually travel to 13.60 cents, which is pointed by the lower trendline of a falling channel.

A more realistic target could be 14.21 cents, the 14.6 percent Fibonacci retracement on the fall from Dec. 4, 2015 high of 15.85 cents to 13.93 cents.

Resistance is at 14.66 cents, the 38.2 percent level, only a break above which could confirm the extension of the bounce from the Jan. 21 low of 14.11 cents, towards the range of 14.89-15.12 cents, formed by the 50 percent and the 61.8 percent retracements.

Copyright Reuters, 2016

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