On the 4-hour chart of sugar’s June futures we can see a five-wave impulse to the upside, followed by a zig-zag correction. Wave C of this retracement looks like an ending diagonal, which has just been broken to the upside. According to the Elliott Wave Principle, after every 5-3 cycle the trend is supposed to resume in the direction of the impulsive five. If this is the correct count, we should expect higher sugar prices during the months ahead.
The ending diagonal would be invalidated if prices fall below 16.30, but the whole bullish scenario will remain valid as long as 14.65 is untouched.
