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

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.

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