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Hugo in HTO Trading,

Sugar: Seems to have found support

Since the beginning of the year the commodity lost more than 28.0% although last week rose more than 3.0% and continues in a bearish phase since late February.

Last week the sugar initially fell but found enough support to erase all its losses and managed to close near the high of the week, furthermore the soft commodity closed above the previous week high, which suggests a strong bullish momentum.

The stochastic is showing an oversold market although is displaying a strong bullish momentum.

The commodity bounce from a Fibonacci extension at 12.72, signs of buying pressure but a close above the 10-week moving average would bring a deeper correction to the upside.

Expecting an upward move to a weekly resistance at 15.14 on a break above the previous week high at 14.27 (scenario 1) however a bounce from the weekly resistance at 15.14 may set in motion another bearish downward move to a weekly support at 13.80 (scenario 2).