Traders are very bullish on sugar right now, so keep an eye out for a top. In Elliott Wave terms, this should be the fifth and final wave of the bull market. The 3rd wave, the most powerful advance in which most traders recognised this as a bull market, ended last summer. The contracting triangle sideways correction this fall was very likely a 4th wave, since this triangle is often the next to last pattern in a sequence.
As a commodity, sugar is prone to extended 5th waves with crazy spikes. Look at this post from last month with a sugar chart from the ’70s.
Anyway, here is today’s weekly bar chart:
Trader sentiment is a funny thing. People were crazy about sugar last summer at 24 cents, but by November four out of five didn’t want it at 22 cents, and now nine out of ten love it at 30 cents. Makes no sense unless you think of them as a bunch of herding animals.