NY sugar looks shaky, due for deep correction
Wednesday, 09 October 2013
SINGAPORE: New York March sugar looks shaky while it hovers below a resistance at 18.70 cents per lb and may quickly retrace to a support at 18.28 cents.
The resistance is provided by the 176.4 percent Fibonacci projection level of the wave C that started at the Aug. 22 low of 16.79 cents. Only a surge above this barrier could confirm the extension of the wave towards 18.95 cents, the 200 percent projection level.
The bearish divergence on the hourly RSI suggests sugar has become technically very weak and is due for a deep correction which may reach as low as 18.28 cents, the 138.2 percent projection level.
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