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Hi Stig,
I am not a bar chartist like you, but to add to your March Sugar's
observation, I have the
following:
1) Weekly trend is down, but the daily trend is up and rising,
2) The momentum indicator(ADX) is at 13. This could be a good signal of
a possible
breakout,
3) Open Interest, and Volume are increasing, meaning fuel, and liquidity
are added to this
market,
4) I have a support at 11.70, and resistance at 11.90. This Friday,
Sugar closed right below the resistance level.
To sum all the above up, you might be right that something should happen
very soon with
this market. My opinion is to stay on the side line. But I'll be a
BUYER, if Sugar closes above 11.90 with protective sell-stop at 11.65.
Also make sure the weekly, and daily trend are on your side as well!
Happy trading,
Frank
Stig Olausson wrote:
> Rt's
>
> Last time I commented on sugar it was a disaster, so let's try again.
> It
> really looks like we have something again
>
> The naked eye can spot a gigantic continuation Head and Shoulder
> Pattern
> right now, with a MINIMUM potential of 12.94 (close Friday 11.84).
> But what is interesting is that the bottom of the H&S looks like a
> wave A
> in a correction, retracing 50% of the advance, and the right shoulder
> (Wave
> C) have retraced 50% of wave B.
> And if you look at the right shoulder in close only perspective it is
> also
> forming a small inverted H&S formation and with just a small advance
> we
> will have a break out.
> Furthermore the right shoulder, if looked at in the perspective of a
> barchart will form a falling (bullish) wedge, and right now we are
> just
> below the upper trendline.
> What is more interesting, is that if we break that wedge-line, the
> potential in the wedge it turns out that we will probably also break
> the
> neckline in the H&S and we should enter wave 3 of 5.
> In the light of el Nino I will certanly look into this scenario and I
> hope
> somebody else on RT can find arguments for an interesting development
> in
> sugar. This is just what I saw when I updated my charts, and I
> thought it
> was woth mentioning.
>
> Regrds
> Stig
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