Simple charts with sweet setups like this are hard to come by. The weekly chart of sugar is nearing a significant turn showing clear RSI divergence on a weekly and daily basis. The weekly chart shows we are in the 5th wave down, with w-x-y-x complete and working on z.
Looking closer at the daily chart, currently printing daily bar 7 of the impulse?with two declining support trend lines below. I expect the long term support trend line to be broken this week as we head toward the 10.98-10.63 area for wave z. I am expecting a turn in the next week or so and a change in the dominate?trend in the next month. Any break of the falling wedge to the upside signals the change in trend is underway. This has the potential to be a double in the next 12 months,
Placing price in time is probably the least understood, most under utilized aspect of swing?trading. Patterns only have so much time to play out and understanding how to look at price in time is an important arrow in the quiver of any trader. Taking aim at a swing trade especially a change in trend and having ways of considering time gives Jack and I an edge in our trading.? We will be discussing many such approaches in this blog in the future.
The ?cycle chart for sugar shows the low window of this impulse coming to an end before 6/19 and a potential high window for the next turn with a center date of? 8/19 or so. Low and high windows correlated with price action and structure?increases our odds of success.
I will be updating this post as we see this turn develop. Sugar can be a beast so waiting for a?turn and a higher low before entering this swing may reduce your risk. Jack and I will be showing other methods of utilizing price in time in future posts.