Sugar against the US Dollar today moved into significant weekly demand level and showed signs of a rejection. Price dropped to 0.1470 and instantly found buyers as signified by the pin bar candle formation on the daily time frame. The price currently sits around 0.1496.
If price fails to drop below the low at 0.1470 we should see an increase in buying activity to mirror the buying pressure seen in the last visit to this price area in April 2016.
An entry anywhere around current price with stops at 0.1381 should yield a very good risk/reward trade. The resistance level and psychological level up at 0.1800 will likely see some buyers taking profit. This level being the longer term target. The 200SMA is also worth keeping a note of as signified by the red line on the chart. Any strong rejection of this moving average should be met with caution and possible profit taking opportunity.
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