A quick glance at today’s commodities charts reveals one futures market that’s looking pretty sweet: sugar.
Sugar rallied to a four-week high today (April 15) – a move that had financial media outlets everywhere scrambling to figure out exactly why everyone’s so "high" on the commodity.
The move also caught the attention of our own futures analyst Mike Boysen – who is filling in today for Daily Futures Junctures' long-time editor Jeffrey Kennedy.
But while the conventional financial media is still scrambling to figure out exactly why sugar keeps jumping, Mr. Boysen only needed to take one glance at last week’s Weekly Wrap-up, presented by Jeffrey in Friday's Daily Futures Junctures', to gain a solid foothold of what to expect next.
Here is the chart of sugar (with some labels removed for this publication) that Jeffrey Kennedy displayed last Friday (April 11):
As you can see, Jeffrey expected a move higher in sugar in the near future – and we got one on April 15.
From an Elliott wave perspective, Sugar has rallied because prices have been developing an impulsive pattern, which was likely to be concluded some time this week. Now that it has, it doesn't really matter why prices did what they did. For futures traders, what matters now is where those prices go next.
Conventional analysts say that sugar has rallied "on speculation [that] higher corn prices will boost demand for fuel made from sugar cane.” (Bloomberg)
Elliott wave analysis says that now that Sugar is getting close to its established price objectives, what is likely in store for sugar bulls is a big surprise. To learn more, read the April 15 Daily Futures Junctures online now – risk-free for 30 days, as always.