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Sugar

$MSM with upside potential of 70% ?? Technical Wise: After breaking out of the downtrend, it has been consolidating with healthy volume. Price also moving in higher low while the share price holding above 200-EMA. With this formation, I am expecting to see the price to challange recent high again and has upside potential of 70% which can meet RM 2.7, in mid-to-long term. Like my post on Malaysian Stock? Come and join stockbit, I usually share my ideas there: stockbit.com/post/7577753 and follow me on the platform or whichever places you like. Follow me: my.stockbit.com/#/gibsontan ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- I believe Malaysian sure has clues of brand of Gula Prai, and the company behind that is MSM, which they produce produces, markets and sells refined sugar products. After years down-trending, finally the share price finally break made a comeback in after FEB2021 , followed by good financial turnaround for 4Q2020 after 2 years of loss-making. I remain bullish with the counter as the trading setup has sparks my interest. On its prospects wise: 🍬 The positive earnings can be sustained as the recovery of domestic sales as economy reopens and more socioeconomic activities leading to more product consumption including sugar. 🍬 Room to grow for the current utilisation rate of 47%, which the company aimed to grow the rate above 50% as mentioned in AR2020. This shall better improve efficiency and result in lower refining and production cost. 🍬 Increasing exposure potential in exports would benefit MSM, as the global sugar retail price has gone up. This put their exports segment to better margin given that they are able to sell at higher price. As in Malaysia, sugar price has capped at ceiling price of RM 2.85 per kg, if any news to revise the capped price would be good for MSM in general. 🍬 Good hedging position in raw sugar price. As the global raw sugar price has gone up to 19usd, it would not reduce MSM margin because the group has fully hedged its raw sugar for 2021 at 0.13-0.14 usd/lbs while 85% of for 2022 at 0.16-0.17 usd/lbs. It can secure better margin for MSM.
MYX:MSMLong
by Gibsonwm
Sugar (Sugar No. 11 - May 2022) set to continue the trendI firmly believe raw sugar futures are set to continue their upward trend seen for months now. While they have consolidated for a time and recently dipped below temporary support, which could be mistaken for a trend breakout, I believe we are simply seeing a sell-off as a reaction to the futures having floated highly above the trendline for a long time. As pointed out on the chart, the recent sell-off is of a magnitude similar to earlier sell-offs, and furthermore, we are resting firmly on the trendline. However, the risk of a trend breakout is significant and I recommend a tight SL at 18.45. On the other hand, should my hypothesis prove right, enjoy the ride and take profits at your own discretion.
ICEUS:SBK2022Long
by MoeTrader01
Sugar 1-day classic patternsQ: What has the highest probability of occurring? There are bearish pattern failures followed by bullish pattern validations into an uptrend. There are 2 classic patterns 1 is validated the other has not validated. The cup & handle is in breakout and is approaching its target. The pattern projects $0.2175 per pound as the target. The bull flag is not validated. This pattern projects $0.2200 per pound as the target. Objectively $0.20 per pound is a psychological resistance level. The price for a pound of sugar has increased and the breakout from bullish patterns coinciding with the failure of bearish patterns reflect this. Volatility is declining and the rate of change has dropped below 0. Declining fear and a break in the trend's momentum. Since the cup and handle has validated the bias is for long positions. Confirmation of the bull flag provides a starting point for trend continuation.
OANDA:SUGARUSDLong
by xciiitradingco