糖 技術分析 - 糖 交易: 2018-12-10

Demand for biofuels may increase in Brazil

A major ethanol producer in Brazil forecasts an increase in the proportion of sugarcane intended for biofuel production. Will sugar prices rise?

On the daily timeframe, SUGAR: D1 has breached up the resistance line of the downtrend and is trying to form a growing trend. The further price growth is possible in case of an increase in demand for biofuels.

• The Parabolic indicator gives a bullish signal.
• The Bollinger bands have narrowed, which indicates low volatility. The lower band is titled upward.
• The RSI indicator is above 50, but it has not reached the overbought area yet. It has formed a positive divergence.
• The MACD indicator gives a bullish signal.

The bullish momentum may develop in case SUGAR exceeds the last fractal high and the upper Bollinger band at 13.2. This level may serve as an entry point. The initial stop loss may be placed below the last fractal low, the Parabolic signal and the lower Bollinger band at 12.3. After opening the pending order, we shall move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we are changing the potential profit/loss to the breakeven point. More risk-averse traders may switch to the 4-hour chart after the trade and place there a stop loss moving it in the direction of the trade. If the price meets the stop level (12.3) without reaching the order (13.2), we recommend to close the position: the market sustains internal changes that were not taken into account.

Summary of technical analysis