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Hugo in HTO Trading,

Sugar: Remains in a consolidation zone

Since the beginning of the year the commodity lost more than 26.5% plus last week managed to drop almost 2.0% and remains in a recovery phase since late October.

Last week the sugar initially fell but found enough support near the 10-week moving average to erase some of its losses and closed in the middle of the weekly range, furthermore the soft commodity closed within the previous week range, which suggests being clearly neutral, neither side is showing control.

The stochastic is showing lack of momentum although is still above the 50 mid line.

The commodity continues to trade within a consolidation zone that goes from 15.14 down to 13.29 and validating that the weekly support and the 2014 low is a strong support. Sugar prices may rise as Christmas approaches and the consumption of this commodity also increases.

Expecting an upward move to a weekly resistance at 15.14 on a bounce from a weekly support at 13.80 (scenario 1) however a break above the previous week high at 14.80 may trigger a bullish run up to a weekly resistance at 16.13.