The Sweetest Sugar trade that relies on chart geometry and MA
The yellow shaded zone was widened to indicate (1) a jump off point from the base/consolidation into a price territory where the price of sugar started stalling. Also the top of the rectangle shows where some sellers started to press down. This is not technically a series of lower highs yet, meaning on every rally they sell but the pattern is emerging. I included exponential moving averages in a ribbon format to show where I think the selling pressure might be exhausted, and it is within ticks of my overall target. This is subject to revision if I notice any moment of strength. Sugar is not weak in the trend overall but the height measuring tool suggest a slight pullback would be in order
The other aspect of this trade that is good is that the ratio of risk to reward is good given the amount of risk you are willing to take.
The other aspect of this trade that is good is that the ratio of risk to reward is good given the amount of risk you are willing to take.
Trade closed: stop reached
It turns out the move higher took me out of the position. It was good technically even though now might be a good time to give it another attempt. I would have liked to wait longer for a better entry but this time I will repost this trade idea from this location.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.