Sugar, Sugar

Back on March 18 I posted a bullish pattern setup on Sugar, titled “How Sweet It Is” where I wrote

Right now price sits just below prior resistance and has formed an inverse head and shoulders reversal pattern. If price can break above the red horizontal resistance with confirmed volume and hold, I find this a very attractive commodity play with plenty of upside potential, the first projected target some 25+% higher.

Here is a look at today’s closing chart. While it didn’t quite hit the 25% target, today’s high was 23.5% higher than the price on the date of my post. Close enough for government work. 

Bay area best independent financial advisor CFP 6-8-16 Sugar

For those who followed along and took the trade, congratulations! I don’t provide buy and sell signals so you should follow your plan on how to manage. But if I owned it, I would consider locking in some or all of my profits as 1) we have hit our intended target and 2) we are now in an area of major resistance and moving into overbought conditions. With a series of higher highs and higher lows and a rising 200 day moving average, for those with a good management plan, once the consolidation is over, it looks like it has room to move much higher. Some may ask why I would consider selling some if the upside has more potential. My only reason is because it’s a rule. If I enter based upon a pattern, I look to exit (at least some) on completion of the pattern target. I prefer to not give back my gains and attempt to make sure every position makes money. Oh yah, I have also learned not following a plan and switching horses in the middle of the stream can quickly derail profitable investing.