Will Sugar Prices Break The 12.00 Level ?

Sugar Futures---Sugar futures in the March contract is currently trading at 12.48 a pound down 32 points hitting a 6 week low and if you have been following any of my previous blogs you understand that I thought prices could hit the 12.50 level which has happened in today's session.

In my opinion I think sugar is headed down to the 12.00 level as this commodity is following crude oil to the downside as there a sheer panic across the board in today's action as the U.S stock market is down nearly 500 more points.

I never did believe the huge rally that occurred in the month of October sending prices to a contract high on October 24th at 14.24 as that was massive short-covering as I still think lower prices are ahead.

Sugar prices are trading under their 20 day moving average, but slightly above their 100 day which stands at 12.14 as I think that level will be tested this week so if you are short stay short. Fundamentally speaking sugar still remains bearish as overproduction and large worldwide supplies continue to hamper prices coupled with the fact that the U.S dollar is still hovering right near a contract high.

TREND: ---MIXED

CHART STRUCTURE: POOR

VOLATILITY: AVERAGE

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