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Hugo in HTO Trading,

Sugar: Seems to have found support

Since the beginning of the year the commodity lost almost 32.0% but last week alone fell more than 5.5% and continues in a bearish phase since late February.

Last week the sugar dived with a wide range and spread, closing near the low of the week, furthermore the soft commodity closed below the previous week low, which suggests a strong bearish momentum.

The stochastic is showing a bearish momentum and is below the 50 mid line.

The commodity seems to have found some support around the 2014 low and is trying to make a double bottom at that key level however a close above the 10-week moving average would bring a deeper correction to the upside.

Expecting a downward move to a weekly support at 10.90 on a break below the year low at 12.71 (scenario 1) however a break above the weekly support at 13.80 may set in motion a bullish run up to a weekly resistance at 15.14 (scenario 2).