Sugar (SB) is starting to show signs of strength. Last Friday’s volume was the highest volume since June of this year.
When you get this strong volume on large up-moves, it is a very positive sign of strength, and could well be the commencement of an uptrend. But, you have to be patient. Looking the the chart below, you can see that there is resistance at $17.50, where the yellow dotted line is.
The first cyan arrow up is showing you that there was very high volume. The yellow Hawkeye Volume Radar dot placed on the Hawkeye Volume indicates this high volume event, and the Hawkeye Trend dot changes to green, indicating that at this point an uptrend has begun. The second cyan arrow is displayed on a three-day Hawkeye Roadkill setting. You can see that the white dots (an indication of consolidation in the three-day trend) shows the three-day chart is in consolidation, and the green three-day volume bars show that buying volume has begun.
The Hawkeye Perspective
Everything is now virtually in place for a the commencement of a long trend run, but it would have to close above $17.50 to show conviction (the strength needed for continuation beyond the resistance level).