SUGAR (Update)

Friday's price action saw the 15.50 level taken out.  This was the last swing high on the most recent move down and signals a reversal in trend direction.  We now have stopped making lower lows and lower highs.  The key will be if it can continue higher.  The next major hurdle to break is 17.85.  However, there will be stiff resistance on the way to this swing high. 

Let's analyze the recent move up off the 13.00 low.  It has made two major retracements seen on a 120M chart.  The first one was medium deep and the second was very deep.  Both had right hand skew breakouts.  This gives us conflicting signals.  The deep retracements signals a weak up move, but the right handed skewing signals strong upside momentum.  Given the major weakness over the past few months it doesn't surprise me to see these deep retracements as it seems to keep trying to shake off the weak bulls.

Let's look at some potential resistance zones to take profits on longs or get short if you feel another move lower:
Zone 1  15.90-16.05 could get a minor correction
Zone 2  16.25-16.35 (not to exceed 16.50); could get a nice correction
Zone 3  16.66-16.75 (not to exceed 16.90); could get a nice correction