Sugar has been declining for quite some time now, falling down from 18.80 to 16.86. If we take a look at this sell-off, we will see that it has an almost finished impulsive wave structure. Almost, because there is a wave (5) still missing. However, wave (4) seems to be taking the shape of a perfect triangle so far, so chances are good that sugar would fall some more.
Under normal circumstances, we would label this five-wave sequence as wave 1/A, but in this case it should be wave C of a bigger corrective pattern. You should always know where the pattern you are looking at fits into the big picture. You can gain this knowledge by reading the recommended material below, published on July 7th. The situation has been developing right according to it, so there is no point in changing our mind now.
Recommended reading: Sugar with some interesting opportunities
In conclusion, we expect one last wave (5) down from sugar to complete the whole expanding flat correction. Once it is finished, prices should start rising again. Do not be surprised, if you see sugar reaching the 20.00 mark during the next months.
