Sugar (Sugar ETF) is at a 4 year resistance line and is making a potential
key reversal bar. On an intermediate degree the prices have failed below key
trendline supports. A minimum retracement should see prices push lower till
0.382 Fibonacci levels at 21.5.

Unlike Sugar which is showing signs of exhaustion, both Grains and Coffee
are still in an upward trending channel. We need a price confirmation below
respective channels. Coffee is testing the top of a multiyear channel, while
grains are testing a multiyear channel support. Any reversal now could be
the start of at least multi week negative trend on both grains and coffee.

The negativity of soft’s and grains could challenge the agricultural
commodities uptrend and also should strengthen the topping commodity case.
Jiseki cycles are negative on Sugar and all this topping case comes when
Coffee is creating 14 year high news. A top performer, touching channel
highs is more reason for us to look at reversals rather than accumulations.

Mukul Pal, CMT, Orpheus Capitals, Global Alternative Research