SINGAPORE: New York March sugar may break resistance at 15.21 cents per lb and rise further into a range of 15.37-15.46 cents, driven by a wave (c).
The resistance is provided by the 138.2 percent Fibonacci projection level of an uptrend from the Feb. 5 low of 14.33 cents, based on the gain from the Feb. 2 low of 14.10 cents to the Feb. 3 high of 14.74 cents.
The strong bullish momentum built on Feb. 17 may easily push sugar into the range formed by the 161.8 percent and the 176.4 percent projection levels.
A correction from the current level may be limited to 15.06 cents, the 114.6 percent level.
Wang Tao is a Reuter’s market analyst for commodities and energy technicals. The views expressed are his own.
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