Sugartrade
Sugar #11; Dire StraitsIt is the case once again for the typical, alternating, virtually daily news bites, decrying "world sugar deficits", "Brazilian yield collapse (due to drought; El Nino)", "record Brazilian Real strength", "rising crude oil prices" versus "record Brazilian harvests", "strengthening USD" and "falling crude prices due to recession fears". The song remains the same.
In reality;
- Brazilian harvest prospects are doing just fine;
- The recent Brazilian Real strength is likely experiencing it's end of days;
- Crude oil prices, fundamentally and technically, have a far better chance to turn south than otherwise. (See this post; )
Now, factor in the clearly (very) bearish technical outlook while also noting significant short covering, as of late. E.g., the makings of very favorable SHORT Entry here.
The Daily;
With last week's 5 strait days of breaking lower.
SUGAR BULISH SCENARIOPrice boost and upward momentum on Raw Sugar, after India declared that a downward revision on its sugar cane crush. Being the second largest manufacturer of sugar in the world, this news had a positive effect on the price of the raw material.
Both MACD and RSI are confirming the current trend. If it continues, the price might reach levels of 25.539
As a pivot point levels of 22.43 can be used, and if the price breaks below it, can test levels of 21.58
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Sugar - SHORT; SELL it here!Sugar will have an awful hard time to go any higher here, climbing into multi-year major resistance. A sustained decline should take Sugar substantially lower into year's end.
Ample grain and bio-fuel stocks are also a prelude to an over-supply imbalance. (Not to mention substantially lower crude oil prices on the horizon.) This is a low-risk spot to initiate a long term SHORT .
SUGAR FUTURES (SB1!) WeeklyDates in the future with the greatest probability for a price high or price low.
The Djinn Predictive Indicators are simple mathematical equations. Once an equation is given to Siri the algorithm provides the future price swing date. Djinn Indicators work on all charts, for any asset category and in all time frames. Occasionally a Djinn Predictive Indicator will miss its prediction date by one candlestick. If multiple Djinn prediction dates are missed and are plowed through by same color Henikin Ashi candles the asset is being "reset". The "reset" is complete when Henikin Ashi candles are back in sync with Djinn price high or low prediction dates.
One way the Djinn Indicator is used to enter and exit trades:
For best results trade in the direction of the trend.
The Linear Regression channel is used to determine trend direction. The Linear Regression is set at 2 -2 30.
When a green Henikin Ashi candle intersects with the linear regression upper deviation line (green line) and both indicators intersect with a Djinn prediction date a sell is triggered.
When a red Henikin Ashi candle intersects with the linear regression lower deviation line (red line) and both indicators intersect with a Djinn prediction date a buy is triggered.
This trading strategy works on daily, weekly and Monthly Djinn Predictive charts.
This is not trading advice. Trade at your own risk.