Sugar rallies a little from the lows but outcome still unclear.

The big negative candle we saw yesterday was not followed up with another negative candle but at the same time the response wasn’t significantly positive either. Definitely the right time to wait another couple of days so I and feeling positive that the market did not take out the old lows but at the same time the bounce from yesterday’s close was relatively small so we will have to wait and see.

There is definitely some strong selling interest in sugar at the moment but it’s more a case in my mind of whether those parties have the ammunition to take it down through the 13 cent level or whether they run out of bullets and have to cover in which case I think we would see a sharp rally.

Either way I’m just watching to see who’s going to win and will either have to cover my position if the sellers win or continue to sit if the bulls manage to fight off this attack.

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