The main trend turned up in March Sugar when it crossed the swing top at 24.25 on January 3. The lack of follow-through to the upside triggered a near-term correction, but the market was able to attract new buyers slightly above a key main bottom at 22.62.

With the market showing a higher-top and higher-bottom, there is a slight bias to the upside. The fact that the market has been trading in a compressed range is a strong indication of impending volatility. Upside momentum is needed to drive this market higher. If this occurs then the first objective is 50 percent of the 28.25 to 22.62 range at 25.49.

Traders should watch for a technical bounce at this level, but not necessarily the start of a change in trend. It is a natural selling point or profit target for short-term bulls, but a test of this level may not attract fresh shorting pressure which is necessary to turn the main trend back down.