Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of SUGARR ($SB_F). As our members know, SUGAR has been showing incomplete bullish sequences within the cycle from the April 28th low, calling for further rally. Consequently we expected the commodity to find buyers in 3 waves pull back against the 10.07 low. Pull back unfolded as Elliott Wave Zig Zag pattern ((a))((b))((c)). In the further text we are going to explain the Elliott Wave Pattern and the Forecast.
Before we take a look at the real market example, let’s explain Elliott Wave Zigzag pattern.
Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.
Now let’s take a look what Elliott Wave Zig Zag pattern looks like in real market.
SUGAR Elliott Wave Analysis 05.28.2020
SUGAR is doing correction against the 10.07 low. First leg ((a)) black unfolded as 5 waves down from the peak. Then we got 3 wave bounces in wave ((b)) and finally, we’re doing last leg down ((c)) black. Pull back looks incomplete at the moment. We expect to see another leg down to complete 5 waves in ((c)) leg. We don’t recommend selling the commodity and expect buyers to appear soon for further rally toward new highs.
You can learn more about Zig Zag Elliott Wave Patterns at our Free Elliott Wave Educational Web Page.
SUGAR Elliott Wave Analysis 05.28.2020
Eventually we got last leg down wave (v) of ((c)) as expected. Pull back X red ended as Elliott Wave Zig Zag. We are getting nice rally , however need to see break above W red -11.32 peak to confirm next leg up is in progress. The commodity is showing incomplete bullish sequences in the April 28th cycle, targeting 11.85-12.99.
Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room
Elliott Wave Forecast