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