The support is provided by the 50 percent Fibonacci retracement on the rise from the Sept. 23 low of 15.51 cents to the Oct. 9 high of 17.20 cents. Sugar has cleared a former support at 16.55 cents, the 38.2 percent retracement, and is heading towards 16.36 cents.
A break above 16.55 cents, now a resistance, may signal the completion of the correction from 17.20 cents, and the 23.6 percent retracement at 16.80 cents will be targeted.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.