On Wednesday January 27th I wrote an article that gave you a picture perfect trade setup. The trade is on sugar or the N:SGG sugar ETF. As of this writing, sugar is now over 10% in our favor from the original entry and trading at short term support.
This is a critical level to lock in partial profits and move your stop in the money for the balance of the trade to be safe. I just want to keep following up with this trade as many followers are in this trade with me.
Daily Chart of Sugar
As you can see in the chart below, sugar price formation has turned bearish. With price breaking through support we have seen a beautiful wave of stops being triggered and traders selling their long positions.
There were a few ways to execute this trade. You can do what I do and trade the sugar contract using CFD’s. Or you can trade the SGG sugar ETF.
Sugar Trade Idea Conclusion:
In short, sugar was poised for a strong move down as mentioned January 17th. But now is the time to locking in gains and tightening your stop. This was a simple and profitable setup and there is no need to give back these gains.