Subscribe to RSS

Forex Technical Analysis #C-WHEAT : 11 January 2016

Awaiting monthly report from US Agricultural Department

Wheat prices are edging up from the 5 and 1/2 year lows. Previously they lost 10% from mid-December amid favorable weather and stricter import regulations of grain to Egypt. Last week the weather has turned nasty which caused the massive closure of the shorts. For the last week of 2015 the volume of shorts closed increased almost 40%, according to the US Commodity Futures Trading Commission. Will the wheat prices continue rising?

Market participants have opened many shorts in wheat hoping for the continued spell of fine weather in the United States but it did not happen. The US Department of Agriculture (USDA) has revised downwards the winter wheat seedlings rated in “good and excellent” condition in Illinois on December 31 to 58% from 67% on November 29. Nine people died in flood in Illinois. The depreciated seedlings quality triggered the shorts closure and the further wheat prices growth. Now investors expect the report on global wheat market and the US stockpiles which are to be published on December 12, 2016 at 18:00 CET. Besides wheat the report will cover the corn, soy, cotton and rice markets. As follows from the consensus forecast, US wheat stockpiles on December 1 are estimated at 1.698 bn bushels. Investors do not expect the dramatic contraction of world wheat stockpiles by the end of 2015/16 season. They estimate them at 229.6mln tonnes while USDA estimated them at 22.86mln tonnes in its report last month.

Wheat

On the daily chart Wheat: D1 is moving sideways. A couple of days ago the attempt of breaking through its support failed but the wheat hit new record low since mid-2010. Now they are slightly moving upwards. The Parabolic indicator and MACD give buy signals. The Bollinger bands have contracted which may mean lower volatility. RSI has formed positive divergence. It has not yet reached the overbought zone but surpassed the level of 50. The bullish momentum may develop in case wheat prices surpass the last fractal high and the Parabolic signal at 482. This level may serve the point of entry. The initial risk-limit may be placed below the sideways trend support, the last fractal low, the 5 ½ year low and Parabolic signal at 458. Having opened the pending order we shall move the stop to the next fractal low following the Parabolic and Bollinger signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. The most risk-averse traders may switch to the 4-hour chart after the trade and place there a stop-loss moving it in the direction of the trade. If the price meets the stop-loss level at 458 without reaching the order at 482, we recommend cancelling the position: the market sustains internal changes which were not taken into account.

Position Buy
Buy stop above 482
Stop loss below 458

0 commentsback to post

Add your comment

Nickname:
E-mail:
Website:
Comment:

Other articlesgo to homepage

Forex Demo Trading Competition 2017 – AHMZ TradeFX

Forex Demo Trading Competition 2017 – AHMZ TradeFX(0)

Forex Demo Trading Competition 2017 Total Competition prize is more than 10,000 USD. Once you log in to your Demo account, you can start competing for one of the 300 prizes. Link:  Forex Demo Trading Competition 2017 Available to: All Customers Ending Date: 31 December 2017 Contest offer: Total Competition prize is more than 10,000

$300 Free Win Trading Credit on Monday – easyMarkets

$300 Free Win Trading Credit on Monday – easyMarkets(0)

Enter now and you may win $300 easyMarkets free trading credit bonus on Monday. Answer the weekend quiz and fill the form with your correct and accurate contact details. Link:  50% Deposit Bonus Up to $2000 Link:  $300 Free win Trading Credit Bonus Link:  Up to $2500 Earn just for Sharing Available to: All new

$50 Free Binary Bonus No questions asked – Tradeplus

$50 Free Binary Bonus No questions asked – Tradeplus(0)

Get $50 Free Open a free Binary live trading account, deposit and get $50 FREE Bonus – no questions asked! Make your first deposit and you’ll get an extra $50 – no strings attached Link:  $50 Free Bonus No questions asked Available to: All new Customers Ending Date: 31 December 2017 Bonus offer: Get $50

Get 20% Bonus Make $100 Deposit or More – FirewoodFX

Get 20% Bonus Make $100 Deposit or More – FirewoodFX(0)

20% Forex Bonus Make $100 Deposit or More. Bonus can be used as additional margin and equity If you deposit $500, you can hold a losing position up to $600 Link: 20% Bonus Make $100 Deposit or More Available to: All new and existing Bonus Ending Date: 31 December 2017 Bonus offer: 20% Bonus Make

150% Bonus for a First Time to Binary Trading – NordFX

150% Bonus for a First Time to Binary Trading – NordFX(0)

Up to 150% Bonus for a First Time to binary options Account. For a perfect start, we offer you a 150% bonus for a first-time $5,000 deposit. Link:  Up to 150% Bonus for a First Time Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Available to: All new traders Ending Date: 31 December

100% Welcome Bonus Plus Daily Free Signals – Trade12

100% Welcome Bonus Plus Daily Free Signals – Trade12(0)

Get 100% Welcome Deposit Bonus and 7-day risk free trade, Boost your trading with a free 100% Welcome Deposit Bonus to your Live Trading Account. Link:   Get 100% Welcome Bonus Link:  50% Exclusive Deposit Bonus Link:  Free Daily Forex Trading Signals Available to: All new clients Ending Date: 31 December 2017 Bonus Offer: Get

25 Euro Forex No Deposit Welcome Bonus – direktbroker-FX

25 Euro Forex No Deposit Welcome Bonus – direktbroker-FX(0)

25 Euro Forex No Deposit Welcome Bonus to all EU and the UK  live Trading Account Holder. Open a real account direct instead of an demo account first and you will get a 25,- Euro Free. Link:  25 Euro Free Welcome Bonus Available to: All new account Ending Date: 31 December 2017 Bonus offer: 25

Up to $250 Cash in Your Expert Advisor – ThinkMarkets

Up to $250 Cash in Your Expert Advisor – ThinkMarkets(0)

Up to $250 Cash in Your Expert Advisor. Make the Move to Think Trader and Cash in Your Expert Advisor for Up to $250* Link:  Up to $250 in Your Expert Advisor Available to: All new account Ending Date: 31 December 2017 Bonus offer: Up to $250 Cash in Your Expert Advisor Bonus to all new

$30 Forex No Deposit Bonus Welcome Promo – XM

$30 Forex No Deposit Bonus Welcome Promo – XM(0)

$30 Forex  No Deposit Bonus Welcome Promo Bonus and 15% Welcome Deposit Bonus, Welcome Bonus brings Real Account clients the best rewards available. Entering the markets and trading with XM enables you to earn from your trades and build your own bonus up to a maximum of $1,000. Link:  $30 Forex No Deposit Bonus Link: 

50% Re-Deposit & 100% Tradable Bonus – Xtream Forex

50% Re-Deposit & 100% Tradable Bonus – Xtream Forex(0)

50% Re-Deposit Tradable Forex Bonus for all of its traders. Every existing and new trader is eligible for this Re-Deposit Tradable Bonus for depositing into their trading account. Link:  100% Tradable Deposit Bonus Link:  35% Deposit Cash Bonus Link:  50% Re-Deposit Forex Bonus 50% Re-Deposit Forex Bonus XtreamForex is glad to announce 50% re-deposit forex

read more

Forex Featured Broker

Contacts and information

ForexDepositNews.com Forex Deposit Bonus, Forex No Deposit Bonus, Forex Live Contest, Forex Demo Contest, Free Forex Bonus Forex Brokers Review and Other All Forex promotions.

ForexDepositNews.com

Social networks

Most popular categories