We always refer a lot to the blue boxes which are often shown on our charts and define them as High-Frequency areas which are based in a relationship of sequences, cycles and calculated using extensions. Traders are always looking for answers and news to decide what to do next, whether to buy or sell, whereas we are always looking for the Blue Boxes and the relationship between Instruments, cycles, and sequences to guide members into the next trading opportunity. Our motto is do not trade the hype, trade the sequences and technical levels. We believe it’s the patterns and the cycles which determine the next move in the market and news only acts as a trigger to start the move in that direction or acts a catalyst and make it happen more quickly than it would have happened under normal circumstances. In this article, we would look at the forecast of Sugar for the past few months or so and how it reacted after reaching the blue box area that we had highlighted on the chart.

Sugar (SB_F) Daily Elliott Wave Analysis 12.1.2019

Sugar daily chart below shows that it completed a 5 waves decline at $9.91 on August 22, 2018. This 5 waves Elliott wave impulse started back in September 2016 @ $24.12 After an impulse lower, a recovery should take place in either 3, 7 or 11 swings which is the corrective sequence of the market. In the chart below, we can see Sugar already did a 3 waves recovery to $14.24 and then pull back in 3 waves to $10.68 and started pushing higher again. As the decline from $14.24 was a corrective 3 waves decline and the rally from $10.68 low was in 5 waves, we called another leg higher toward $15.02 – $17.73 area to finish the correction from $9.91 low.

Sugar Elliott Wave Analysis 8 December 2019

Sugar (SB_F) Daily Elliott Wave Analysis 02.02.2020

Chart below shows Sugar continued the rally as expected and has almost reached the blue box area that we showed back in December 2019. As it was nearly at the blue box area, we changed the preferred wave count from a 3-3-5 FLAT structure to a double three Elliott wave structure. It was still possible for Sugar to correct the cycle from October 2019 low and make another high to become 5 waves up from $10.68 and a FLAT from August 2018 low. In either case, blue box highlighted the extreme area up from August 2018 low and we expected the bounce to finish in this area and the decline to resume either for a new low below August  2018 low or a larger 3 waves pull back at least.

Sugar Elliott Wave Analysis 2.2.2020

 

Sugar (SB_F) Daily Elliott Wave Analysis 03.08.2020

Sugar chart below shows it reached the blue box and has started reacting lower as expected. Sellers were waiting in the blue box and have started pushing prices lower. Decline from the peak is so far in 3 waves but is beginning to look impulsive. If it does manage to complete 5 waves decline from the peak at $15.92, that would add conviction to the view that next leg lower to break below $9.91 low is already in progress. In either case, we have already seen the minimum reaction lower from the blue box which reached 50% Fibonacci retracemne of the rally from black ((X)) low at $10.68 which means any sellers which entered in the blue box should already be in a risk free position.

Sugar Daily Elliott Wave Analysis 3.8.2020

FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD Price Analysis: Sideways trend continues unfolding

AUD/USD Price Analysis: Sideways trend continues unfolding

AUD/USD is in a down-leg within a narrow trading range. The pair is probably in a sideways trend with the odds favoring an extension of that trend. A decisive break above or below the top or bottom of the range would generate follow-through targets. 

AUD/USD News

EUR/USD: Central banks’ decisions will keep taking their toll

EUR/USD: Central banks’ decisions will keep taking their toll

The EUR/USD pair slid below the 1.0700 mark for the first time in over a month on Friday, as the US Dollar surged on the back of risk aversion. The dismal mood prevailed throughout the week, with a short-lived exception on Wednesday when softer-than-anticipated United States inflation brought a breath of fresh air.

EUR/USD News

Gold gains ground as traders dial up Fed rate cut bets for September

Gold gains ground as traders dial up Fed rate cut bets for September

Gold registered limited gains this week, supported by safe-haven flows and soft inflation data from the US. In the absence of high-impact macroeconomic data releases ahead, investors will pay close attention to technical developments in XAU/USD and comments from Federal Reserve officials. 

Gold News

Bitcoin active addresses hit lowest level in five years, BTC ranges below $67,000

Bitcoin active addresses hit lowest level in five years, BTC ranges below $67,000

Bitcoin, the largest asset by market capitalization, has noted a decline in its active address count per data from Glassnode. A decline in active addresses is typical at a time during a surge in Bitcoin transaction fees.

Read more

Week ahead: RBA, SNB and BoE next to decide, CPI and PMI data also on tap

Week ahead: RBA, SNB and BoE next to decide, CPI and PMI data also on tap

It will be another central-bank-heavy week with the RBA, SNB and BoE. Retail sales will be the highlight in the United States. Plenty of other data also on the way, including flash PMIs and UK CPI.

Read more

Majors

Cryptocurrencies

Signatures