Sugar Futures 2012-06-06



Here I have entered a sugar futures trade, that by this time I have already exited at a profit. A small profit, but one none the less. I am being weary of trading sugar long, due to a recent series of burns on MACD divergence entries. This time, I entered on a swing from the moving average with a quick exit plan. I am still of bullish mind towards sugar, but I am yet to feel convinced that the moment is now to act with longer term intentions. The Daily sugar futures charts are showing a good MACD divergence indicating a bottom is in the making. However, these things can be difficult to time, and I don't want to tie up capital indefinitely at the whim of short term ups and downs.

Entry for this trade occurred at 06:19 at a price of 19.62, 0.05 above the moving average. Prices declined immediately. I could have waited and got in at near to 19.55, but such is life. My exit occurred at 19.80 less than an hour and a half later. This is a typical intraday swing trade.

Below is the 60 minute chart for October Sugar.

sugar futures swing trading

When swing trading, one must first confirm the trend either by using the slant of the moving average on the time frame being traded, or the slant of the moving average on the immediate time frame larger, or by identifying top or bottom formations like MACD divergences to determine new trend, or any combination thereof. Once trend is determined, one waits until prices reach a moving average that has been timed to coincide with the bottoms of up-trends or the tops of down-trends. Exit signals are given by prices reaching the proximity of an upper price channel. To learn more about this, visit swing trading strategy.

On other notes, I am still feeling bullish about gold, but I am waiting for a more suitable entry zone. I am also watching currencies quite closely. Specifically the AUD/USD and the USDX. My latest USDX trade was closed at a reasonable profit, although the new top I was hoping for does not seem as though it will occur. In my opinion, it seems as though the USDX has made a temporary top. This could give way for several of the currencies to engage in upward movement.

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