It was April 23rd, when we showed you the following chart, stating that sugar has already drawn a perfect 5-3 Elliott Wave cycle and it was time for another rally.
Recommended reading: Sugar, so far so good
The next chart will show you how the situation has been developing ever since.
As visible, sugar began rallying and reached a new high above the top of the previous impulse, which is more than enough to consider this forecast successful. However, the uptrend was limited to only three waves. If you have been following what we do, you probably know, that three-wave movements are corrective. This means that sugar is still in some kind of a corrective pattern. With a three-wave a-b-c to the south, followed by a three-wave a-b-c to the north with a new extreme, there is one specific pattern, which comes into mind – the expanding flat. If this assumption is correct, we should now expect a five-wave decline in wave C of the expanding flat. Ideally, the whole retracement should end near the 61.8% Fibonacci level, which means somewhere around 16.10. Once this zone is reached, we will have enough reason to expect the uptrend to resume in wave (3)/C.
