SGG, like other commodities products, is benefiting from the slumping U.S. dollar. However, some believe the PowerShares DB U.S. Dollar Index Bullish Fund (NYSEArca: UUP), which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, is still stumbling as the Federal Reserve holds off on raising interest rates.
Related: Agriculture ETF Rally Looks to Change Laggard Trend
Looking at the daily chart for October Sugar futures, we notice what has the potential to be a double-top formation. This generally bearish technical pattern would need to be confirmed by the market closing below chart support seen at the July 29 low at 18.71, preferably on higher than average trading volume. This pattern would be invalidated on a close above the most recent high made back on June 30 at 21.22,” adds OptionsExpress.
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iPath Bloomberg Sugar Subindex Total Return ETN
