SUGAR ($SUGARUSD) 🍬| Do we See a Sugar High or Cavities?
🍦 The future of sugar futures looks sweet. Sugar futures have been trending well recently, with levels being constantly respected, so the chart is attractive from that perspective. It is especially attractive for the bulls given the current recovery on the back of the COVID correction.
With that in mind, despite the bullish price action, this hot sugar chart looks like it could cool off here and crystalize for a bit.
Below we map out a potential pathway for both the bulls and bears to find out if this sweet tooth leads to a sugar high or cavities.
Support:
If we break below the current range it isn't a great look for the current bull trend, but that doesn't mean the bulls are out of options. The S1 bullish S/R flip should act as a temporary support.
If the bulls can then bust through the current consolidation range they are in good standing, however the more likely bearish breakdown path leads to S2, which really does away with the bullish structure.
Resistance:
If the bulls can push us above the R1 and the current range then we likely continue on the sugar high. On that path the R2 S/R flip is our first real point of resistance, a reaction here likely has us testing R1 as support. If that all goes well we likely get a bullish continuation to at least the R3 order block.
Above R3 are the R4 orderblock and S/R flip cluster and finally R5 orderblock at the top.
Summary:
It currently looks like we are headed for a correction, but the bulls still have a real chance to sustain the trend here. The big danger for sugar bulls is letting a breakdown from the current range turn into a trip down to S2.
Resources: www.spglobal.com/pla...s-alongside-real-oil
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With that in mind, despite the bullish price action, this hot sugar chart looks like it could cool off here and crystalize for a bit.
Below we map out a potential pathway for both the bulls and bears to find out if this sweet tooth leads to a sugar high or cavities.
Support:
If we break below the current range it isn't a great look for the current bull trend, but that doesn't mean the bulls are out of options. The S1 bullish S/R flip should act as a temporary support.
If the bulls can then bust through the current consolidation range they are in good standing, however the more likely bearish breakdown path leads to S2, which really does away with the bullish structure.
Resistance:
If the bulls can push us above the R1 and the current range then we likely continue on the sugar high. On that path the R2 S/R flip is our first real point of resistance, a reaction here likely has us testing R1 as support. If that all goes well we likely get a bullish continuation to at least the R3 order block.
Above R3 are the R4 orderblock and S/R flip cluster and finally R5 orderblock at the top.
Summary:
It currently looks like we are headed for a correction, but the bulls still have a real chance to sustain the trend here. The big danger for sugar bulls is letting a breakdown from the current range turn into a trip down to S2.
Resources: www.spglobal.com/pla...s-alongside-real-oil
Hit that 👍 button to show support for the content and help us grow 🐣
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