Trade of the week: long sugar
We would like to enter a long position on US #11 sugar with a stop loss below the May and August lows at 17.70 and an upside target at 21.00.
(AI video summary)
Previous Arabica coffee & soybean trading outcomes
In this week’s edition of Trade of the week, Axel Rudolph revisits some recent trades and analyses their outcomes while introducing a new opportunity in the commodities market. In late August, shorting Arabica coffee yielded a 9% profit, though not everyone hit the target. Last week, short positions on soybeans were maintained, following the downtrend. The position has stayed stable around the 1,020 level with minimal volatility. The stop loss is set at 1,150, securing the strategy against resistance levels.
This week's trading opportunity
This week, focus shifts to going long on US #11 sugar futures, with a target price of 21.00 and a stop at 17.70. After a potential bottom in August and a subsequent rally, the market seems set for further gains.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
Live prices on most popular markets
- Forex
- Shares
- Indices
