Sugar — Bitter Or Sweet?
Sugar has found a satisfactory price level between buyers
and sellers in the 8.60 area over the past week but which way is it likely to
resolve once it comes out of consolidation? The move is likely to be
larger than normal based on sugar’s Multiple Days Low
Volatility
reading: contracts often explode out of such lower-than-normal volatility
situations. Chart clues suggest that the move could be down. The contract is on
the Pullback From Lows
List. Also, the tail bars on 5/22, 6/6, and 6/11 and the fact that the contract
has failed to close above the 5/30 gap all suggest a move south.Â
Also in the softs, although
coffee
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PowerRating)Â is making good on its Turtle Soup Plus One Buy
setup. The pattern of lower lows and narrow-range bars at the low suggest a
move to fresh multi-year lows out of this contract’s inverted cup and handle
formation.
In the energies, July crude oil
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PowerRating)
and heating oil
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PowerRating)Â are holding above yesterday’s gap
above the 20-day moving average and
unleaded gasoline
(
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PowerRating) is higher after doing a same-day Turtle
Soup reversal. The move higher coincides with a report out from the
International Energy Agency forecasting that world demand for oil will increase
by 2.4% in Q3.Â
Debt futures are rallying, following
New 10-Day Highs List readings. September T-bonds
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PowerRating) are
making good on an Off The Blocks
entry and
10-year notes
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PowerRating)Â are rallying in a 1090 Opening setup.Â
Although the pressure is down, S&P futures
(
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PowerRating) held right
at intraday support at 1245 provided by Carolyn Boroden in her
S&Ps and Nasdaq Price Action Levels.Â
Both new front-month September
euro FX futures
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PowerRating) and
Swiss francs
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PowerRating) lapped open and rallied to make some headway on
their Turtle Soup Plus One Buy
setups but are trading on the bottom of their ranges and could fill the
morning lap. Both contracts scored
New 10-Day Low yesterday and are on the Implosion-5 List.Â