On Thursday, Jul-21 #16 domestic raw sugar futures closed at psychological resistance of 33.00, a contract high and the highest settle for a nearby sugar contract since spring 2012. After five closes above the upper Bollinger Band, the contract could break from the recent three-session rally and consolidate near the trading range for the week to date, from about 32.00 to 33.00. That seems the case in early Friday trading, which held near that 33.00-cent level.
Support may be seen near 32.50, Monday’s open, and 32.00, the previous contract high. Resistance is possible around 33.25 and 33.50. RSI is strongly bearish and, as with the stochastic, is signaling an overbought market. The stochastic did reject a bearish crossover and remains modestly bullish. MACD is strongly bullish.
World sugar futures traded sideways in a lower range in recent sessions, below the 20-day average for both Jul-21 #11 and Aug-21 #5. Technicals for world sugar futures remain bearish, and both markets looked to seek lower closes at week’s end.
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