Sugar could provide two opportunities. The fist one is to wait until wave “B red” is finished and sell in order to catch wave “C red” down. Entries should be found around 17.80, stop loss at 18.50 and take profit at 16.10. If we look at the bigger picture we will see that this A-B-C decline fits perfectly in the role of a zig-zag correction to the previous five-wave impulsive rally from 14.70 to 18.50. So if price really falls in three waves, we will have an ideal Elliott Wave 5-3 cycle. The Wave Principle postulates that when we see this pattern, we should expect another impulse in the direction of the first one. In other words, the second chance to trade sugar is to go long at the end of wave “C red”, in the zone of 16.10. This buying opportunity comes with a stop loss at 14.70 and take profit at minimum 19.00, because new top is the least we want from wave (3)/C in any market, not only sugar. It is not impossible for sugar to reach even higher, let’s say 24.00 for example. But as any other trade, this one has to be closely observed as well.
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