Sugar 11 | Technical Outlook 21-11-2012

Sugar 11 still trading below downward trend line until an upward breakout occurs, the commodity is still deemed to be in a selling mode. The decline that started in late July, evident from the series of lower highs, with the latest at 20.35, remains intact.

Nonetheless, the last 2 candles which close above 19.48  support level suggest that buyers are not letting up. Buying will gather pace if the commodity break above the downward trend line and a violation of 20.35 resistance level should confirm the buying strength. Further resistance is at 21.00 and October high at 22.00.

However, if price fail to break downward trend line and close below 19.48 will extend selling pressure. Support are expected at 19.00 round number and previous low 18.75.