Soybean Trade Technical Analysis | Soybean Trade Trading: 2019-12-27 | IFCM UAE
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Soybean Trade Technical Analysis - Soybean Trade Trading: 2019-12-27

Higher Chinses imports bullish for soybean price

China has increased US soybeans purchases recently. Will the soybean prices continue rising?

China has increased purchases of United States soybeans last month. China bought 2.56 million tons of US soybeans in November, compared to no purchases at all a year ago and 1.147 million tons in October. Purchases of Chinese buyers increased in last couples of months after Beijing issued tariff-free quotas in a goodwill gesture to Washington. And purchases from Brazil fell 24% from 5.07 million tons in November last year. Higher export demand is bullish for soybean prices. At the same time smaller Chinese pig herds after African swine fever disease decimated China’s massive pig herd is a downside risk, However Chinses officials report country’s pig herd has started to recover in recent months.

SOYBEAN rising above MA(200) 12/27/2019 Technical Analysis IFC Markets chart

On the daily timeframe the SOYB: D1 is rising above the 200-day moving average MA(200), which is rising too.

  • The Parabolic indicator gives a buy signal.
  • The Donchian channel indicates uptrend: it is narrowing up.
  • The MACD indicator gives a bullish signal: it is above the signal line and the gap is widening.
  • The Stochastic oscillator has breached into overbought zone, this is bearish.

We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 947.3. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the last Parabolic signal at 924.2. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (924.2) without reaching the order (947.3), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

OrderBuy
Buy stop Above 947.3
Stop loss Below 924.2

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Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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