Hard on the heels of a top extension on Coffee, now comes one in Sugar futures:
We wrote in the July 10th edition that we think (and we still do) that many agricultural and tropical commodities are 'bouncing along the bottom' and that repeated rallies would be imminent. That means there will still be scope for making profits on the short side but that it will be against the grain of prevailing conditions. By all means take profits on longs here and try to sell short (maybe after a pause to see what kind of top might form) hereabouts but bear in mind that we expect more rallies in a few weeks, as we do in Coffee.
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com