This could definitely be a meme 😆
CANE had a break of an ascending triangle on the daily. India sugar production is in question causing increases in the price.
Let's take a look at the monthly chart. Of course, it is easier to draw and analyse the charts on hindsight, plotting all the support and resistance level.
Rather than arguing if you are the first person to spot the bottom or breakout, I am more interested if this trend will persist and if the market offers me a buying opportunity. I have shared before that the...
Sugar ETF Proving to be sweet, not only to the mouth but to the bank account as well.
Another Bullish Move.
Reasoning
Flat Consolidation seems done
Correction is not overextended
Double bottom with second low undercutting the first
Consolidation is long enough, 4 weeks
My Would Be Trade Plan
Risk about 1.5ATR and aim to ride up to 4.5ATR...
Weekly chart.
Ideally, I like to see a more substantial move above the orange spiral and then a retest. Looks to be playing with the idea now.
If support on the orange spiral cannot be found, look for support on the lower green spiral for possible entry in the 7's
A price action below 8.95 supports a bearish trend direction.
Crossing above this level will negate the bearish trend direction.
Consolidation between 8.75 and 8.90.
Crossing below 8.75 might target 8.65 which is the previous low.
It's a Brave New World. Fertilizer was facing a shortage going into 2022 (like most commodities, it has had a undersized amount of investment, with tech seeing most of the in flows) but after the Putin YOLO (that's my ELI5), potash is now in shortage. Using that fact as a basis for expanding my commodity thesis to include more food commodities.
I picked CANE...
After a long run that I posted long ago.. Cane came at consolidation point after hit the resistance... for moment its a time for take profit and wait for another entry.... enjoy profits
I know few of you might trade sugar cane but as its one of the most planted product in brazil I have to make that analysis... for moment the demand for it will increase and we can see a weakness in the dollar that will cause a strength on cane demand.
Not really a trade but more of a long term investment as a hedge against troubles to come in the economy and the return of the pendulum into inflation for years to come. Not sure if it is the absolute low but it looks like a good place to start.
Here is the big picture:
Potential reversal area due to showing divergence. Trendline could be tested. This is one beat down commodity, which makes it attractive. Also RSI broke a downtrend line.
