FxWirePro: US Sugar trades higher on lower supply, good to buy at dips

• Major resistance – $20.16 (Oct 14th 2013 high)
   
• The commodity has recovered after making a low of $19.01 yesterday. It is currently trading around 19.90.
   
• Global sugar price have gained 30% since mid-April on account of balance between supply and demand tightens.
   
• Overall production have been capped by the drought condition in Thailand, India and excessive rainfall in Brazil.
   
• The US sugar taken support near 10 day EMA and any slight weakness can be seen only below 19.
   
• On the down side , any break below $19 will drag the sugar futures  down till $18.26 (Jun 7th low)/17.70 9daily (Tenkan-Sen). Short term weakness can be seen only below 18.
   
• The major resistance is around $20.16 and any break above will take the US Sugar futures to next immediate level till $20.48 (1.618% retracement of $19.92 and $19)/$21.30.

It is good to buy at dips around $19.20 with SL around $18 for the TP of $20.45/$21.30