Back on August 21 we noted multiple reasons why I was taking the Sugar ETN (SGG) for a trade. The least of those reasons was the technical situation, which I’d read a potential double bottom into.
Well today the double bottom is looking better and the trade has quietly gained over 7%. There have been more spectacular items in the portfolios and I really was not paying attention to this one because of what I’d considered sound reasons for an extended trade and for tuning out the daily moves.
It’s going on a month now and I think there are reasons to believe more upside is in store as MACD and RSI go green and the price resides above a modestly up-turning SMA 50. Those reasons are the seasonal pattern for Sugar…
…and the sentiment and CoT profiles, which both remain contrarian bullish. Here’s the latest CoT view of commercial hedgers still hovering at an extreme.
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