Technical Analysis #C-WHEAT : 2020-09-17

Technical Analysis #C-WHEAT : 2020-09-17

Recommendation for Wheat : Sell

Sell Stop : Below 534.3

Stop Loss : Above 556.8

Indicator Value Signal
RSI   Neutral
MACD   Sell
Donchian Channel   Sell
MA(200)   Buy
Fractals   Sell
Parabolic SAR   Sell
Fibonacci   Buy

Chart Analysis


On the daily timeframe the WHEAT: D1 is falling toward the 200-day moving average MA(200) which has levelled off. We believe the bearish momentum will continue as the price breaches below the lower Donchian boundary at 534.3. A pending order to sell can be placed below that level. The stop loss can be placed above 556.8. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

Wheat price decline continues after increased global ending stock and production forecast in WASDE. Will the wheat price continue declining?

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