SINGAPORE: New York March sugar could test a resistance at 19.50 cents per lb, a break above which will lead to a further gain to 19.63 cents.
The rise from the Dec. 13 low of 18.31 cents has been driven by five waves, which together have made up a big wave a, the first leg of a double-zigzag pattern.
The second leg - the wave b, could have completed at 19.06 cents, and the third leg, labelled as a wave c, is unfolding.
A Fibonacci projection on the wave c target points to 20.20 cents over the next few trading sessions, based on the assumption that this wave will travel the same distance as the wave a.
A more realistic target will be 19.50 cents, the 38.2 percent projection level.
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