Sugar has surged 2.71% overnight concerns of a supply shortage within the European Union begin to rise. Record production in the 2014-15 season led to quota restrictions driving sugar prices lower. This decline in sugar prices led to a 14% fall in acreage, which combined with a fall in yields, pushed production down by 24%. The contraction in EU sugar production during the 2015-16 season combined with a fall in imports are major factors driving the price reversal. Despite this turning point, Sugar production is expected to recover by 18% in 2016-17. With the current production quota system set to be reassessed in September 2017, the European Commission is expecting production to rise immediately as much as 5%.
Oil continues to hold market attention as analysts remain pessimistic on the oil recovery. Goldman Sachs believes no change to fundamentals are expected until Q3 2016. With Inventory levels remaining at record highs, Saudi Arabia and Iran continue to increase supply. As fundamentals continue to worsen, with net long positions at record highs, if selling were to resume, this could trigger a significant fall in the oil price.
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Trade Sugar (ICE) (N6) Intraday: further advance.
Pivot: 15.28
Our preference: long positions above 15.28 with targets @ 16.03 & 16.32 in extension.
Alternative scenario: below 15.28 look for further downside with 15.00 & 14.75 as targets.
Comment: the RSI is mixed to bullish.
Supports and resistances:
16.67
16.32
16.03
15.89 Last
15.28
15.00
14.75
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Trade Crude Oil (WTI) (M6) Intraday: turning down.
Pivot: 44.50
Our preference: short positions below 44.50 with targets @ 42.00 & 41.40 in extension.
Alternative scenario: above 44.50 look for further upside with 45.30 & 46.35 as targets.
Comment: as long as 44.50 is resistance, look for choppy price action with a bearish bias.
Supports and resistances:
46.35
45.30
44.50
42.75 Last
42.00
41.40
40.00
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Trade AUD/USD Intraday: under pressure.
Pivot: 0.7760
Our preference: short positions below 0.7760 with targets @ 0.7675 & 0.7640 in extension.
Alternative scenario: above 0.7760 look for further upside with 0.7785 & 0.7830 as targets.
Comment: as long as 0.7760 is resistance, look for choppy price action with a bearish bias.
Supports and resistances:
0.7830
0.7785
0.7760
0.7715 Last
0.7675
0.7640
0.7620
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Trade S&P 500 (CME) (M6) Intraday: the downside prevails. |
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Pivot: 2082.00
Our preference: short positions below 2082.00 with targets @ 2072.00 & 2065.00 in extension.
Alternative scenario: above 2082.00 look for further upside with 2089.00 & 2097.00 as targets.
Comment: the RSI has just struck against its neutrality area at 50% and is reversing down.
Supports and resistances:
2097.00 **
2089.00 **
2082.00 ***
2076.00 Last
2072.00 **
2065.00 **
2059.00 **
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Trade Gold spot Intraday: further advance. |
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Pivot: 1227.00
Our preference: long positions above 1227.00 with targets @ 1246.00 & 1252.00 in extension.
Alternative scenario: below 1227.00 look for further downside with 1220.00 & 1216.50 as targets.
Comment: the RSI is mixed to bullish.
Supports and resistances:
1258.00
1252.00
1246.00
1237.77 Last
1227.00
1220.00
1216.50
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