Since the beginning of the year, the commodity lost over 19.0% nonetheless, last week fell almost 2.0% and remains in recovery phase since late May.
Last week the sugar initially rose but found enough selling pressure near 12.71 to reverse and closed near the low of the week, however, the soft commodity managed to close within the previous week range, which suggests being slightly on the bearish side of neutral.
The stochastic is showing a strong bullish momentum and is above the 50 midline.
The commodity has been in a sideways price action since late May and is consolidating above the 10-week moving average, now at 11.96 and below the 2017 low made at 12.71. It may find strong resistance in the confluence a weekly resistance at 13.29, a 23.6 Fibonacci retracement at 13.39 and the 50-week moving average now at 13.48.
Expecting a downward move to a weekly support at 10.90 on a break below a week low at 11.68 (scenario 1) or on a bounce from a weekly resistance at 13.29 (scenario 2).