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

Start Forex Copy Trading your Perfect Partner – FXTM

Start Forex Copy Trading your Perfect Partner – FXTM(0)

Start Forex Copy Trading your Perfect Partner. Join ForexTime cutting-edge forex copy trading programme with ForexTime Invest and match up with a suitable trader. Let them trade while you watch your potential forex profits grow. Link:  Start Copy Trading your Perfect Partner Link:  $500 Welcome Cash Bonus Promo Link:  Receive $30 Tradeable Credit Free Bonus

150% Chinese New Year Bonus Promotion – FXCL Markets

150% Chinese New Year Bonus Promotion – FXCL Markets(0)

150% Chinese New Year Bonus Promotion to all FXCL Markets clients. Deposit any amount to your trading account and Receives 150% Chinese New Year Bonus Promotion Link:  150% Chinese New Year Deposit Bonus Link:  100% Smart Deposit Bonus Link:  130% Youtube Deposit Bonus Available to: All clients. Bonus Offer: 150% Chinese New Year Deposit Bonus

Trading Cryptocurrency with Leverage 1:1000 – NordFX

Trading Cryptocurrency with Leverage 1:1000 – NordFX(0)

NordFX clients are enjoying the ability to Forex Trading the most popular cryptocurrencies Bitcoin, Litecoin and Ethereum using a 1:1000 leverage ratio Link:  Trading Crypto with Leverage 1:1000 Link:  Demo Cup contest prize fund is $42000 Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Why should one trade with us? The trading is

Receive 55% Bonus on your Deposit Money – NordFX

Receive 55% Bonus on your Deposit Money – NordFX(0)

55% Deposit Bonus Promotion to All New and Existing Customers. 55% Bonus on Deposit Fund your account with $100 – $8,000 and receive a trading bonus up to $4,400! Link:  Demo Cup contest prize fund is $42000 Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Available to:  All new and existing accounts Bonus offer: 

Up to 100% Bonus on your initial Deposit – FXtrade777

Up to 100% Bonus on your initial Deposit – FXtrade777(0)

Up to 100% Bonus promotions on your initial Deposit to all FXtrade777 New clients. Get more for your money at FXtrade777 with an unforgettable Up to 100% Welcome Bonus. Link:  Up to 100% Bonus on your initial Deposit Bonus Offer: Up to 100% Bonus promotions on your initial Deposit to all FXtrade777 New clients. FXtrade777

FIFA World Cup Football Matches Tournament – FBS

FIFA World Cup Football Matches Tournament – FBS(0)

FIFA World Cup Football Matches Tournament. Participate in the contest and win the visit to the biggest football tournament of the year in Russia. Link: FIFA World Cup Football Tournament Link:  Just Share a Greeting Card and Gifts Link:  $50 Free Will be credited to Your Account Link:  $88.8 Forex No Deposit Bonus Link:  $123 Forex

100% Withdrawable Deposit Bonus up to $5000 – NordFX

100% Withdrawable Deposit Bonus up to $5000 – NordFX(0)

100% Withdrawable Forex Deposit Bonus up to $5000. The 100% Withdrawable Deposit Bonus and the initial deposit can be withdrawn after the required number of lots is closed. Profits can be withdrawn without restrictions. Link:  Demo Cup contest prize fund is $42000 Link:  100% Withdrawable Deposit Bonus Link:  55% Deposit Bonus Promotion Available to: All

50% First Deposit Bonus Prom – Hirose Financial UK

50% First Deposit Bonus Prom – Hirose Financial UK(0)

50% First Deposit Bonus Promo Maximum Bonus Amount is $1000 for all customers. The 50% Special Bonus offer for Hirose Financial UK customers who make a deposit to Binary Options account. They can withdraw deposit and profit at anytime!! Link:  50% Deposit Bonus Promotion Available to: All new traders Bonus Offer: 50% Special Bonus offer

200% Pending Bonus for your Next Deposits – CTTrade

200% Pending Bonus for your Next Deposits – CTTrade(0)

200% Pending Bonus for the Next Deposits. Just make the re-deposit and during the day we will credit your 200% Pending Bonus. Link:  200% Pending Bonus for the Next Deposits Available to: All new account How to get Pending Bonus? Just make the re-deposit and during the day we will credit your bonus. This bonus

Free SERENITY Tokens New Year Promotion – Grand Capital

Free SERENITY Tokens New Year Promotion – Grand Capital(0)

Receive free SERENITY tokens for Forex, futures and cryptocurrency trading. The promotions is supported by SERENITY. The objective is to promote and brand the platform as a secure trading solution for trader Link:  Receive free SERENITY tokens for trading Link:  $500 Forex No Deposit Welcome Bonus Link:  Up to 444% Profit Receive for a single

read more

Forex Featured BrokerSocial Trading

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