Technical Analysis #C-WHEAT : 2020-03-23

Recommendation:

Strong Buy
Strong SellSellNeutralBuyStrong Buy

Above 544

Buy Stop

Below 491

Stop Loss

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Senior Analytical Expert
Articles 1524
IndicatorValueSignal
RSI Buy
MACD Buy
Bollinger Bands Buy
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, WHEAT: D1 exceeded the 200-day moving average line. Now it is trying to break up the resistance line of a short-term downward trend. A number of technical analysis indicators formed signals for a further increase. We do not exclude bullish movement if WHEAT rises above its last maximum: 544. This level can be used as an entry point. The stop loss is possible below the Parabolic signal and the last lower fractal: 491. After opening a pending order, we move the stop loss following the Bollinger and Parabolic signals to the next fractal minimum. Thus, we change the potential profit / loss ratio in our favor. After the transaction, the most risk-averse traders can switch to a four-hour chart and set a stop loss, moving it in the direction of the movement. If the price overcomes the stop level (491) without activating the order (544), it is recommended to delete the order: market sustains internal changes that have not been taken into account.

Fundamental Analysis

U.S. The Agriculture Department announced China started procuring US grain under an agreement - Phase 1, a two-country trade deal signed in January this year. Will WHEAT quotes grow?

Previously, US grain imports into China were minimal due to the quarantine caused by the coronavirus epidemic. Wheat supplies will begin for the first time since the end of 2017, when the trade war between the two countries began. Almost all EU countries have closed their borders because of the coronavirus epidemic. This could disrupt grain supply and reduce exports from the EU.In addition, restrictions on the sale of certain agricultural products abroad for food security are not ruled out. Wheat went up by 7% over the week, which was the maximum weekly growth since May last year. Another factor in the increasing demand for cereals, bread, flour and pasta may be their purchase by people that are stockpiling because of quarantine in a number of countries amid the coronavirus epidemic.

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