Sugar ETF (SGG) Reaching Critical Support Level: Turnaround Ahead?

From Chris Kimble: Sugar hasn’t been too sweet for those that have been long it for the past 90-days, as Sugar ETF (SGG) has lost a third of its value.

Could Sugar be about to turn sweet for those long the ETF? Check out where the large decline has SGG at this time:

Let’s be clear about this in regards to SGG, it is in a downtrend and nothing that has happened of late that has changed that. We do focus on potential turnaround zones and this could be one where a counter trend rally could start. The large decline over the past 90 days has SGG testing a potential support cluster at (1) in the chart above, with one of the potential support lines being the lows of last year around the $28.50 price level.

The large and swift decline has been hard on the bulls and they understandably are hard to find. Below looks at Sentiment on Sugar from Sentimentrader.com:

Are the sour times for Sugar about to end? We find the support test and the percent of investors bullish Sugar, a set up where several opportunities could take place.

The iPath Bloomberg Sugar Subindex Total Return Sm Index ETN (NYSE:SGG) was unchanged in premarket trading Thursday. Year-to-date, SGG has declined -29.87%, versus a 9.01% rise in the benchmark S&P 500 index during the same period.

SGG currently has an ETF Daily News SMART Grade of D (Sell), and is ranked #84 of 127 ETFs in the Commodity ETFs category.


The Power of the Pattern looks at these type of opportunities each week in our Sector/Commodity Sentiment extremes newsletter. If this type of pattern analysis would be of interest to you, we would be honored if you were a Premium or Sectors Member, as opportunities like this are discussed each week.

This article is brought to you courtesy of Kimble Charting Solutions.