Grain Commodities Technical Analysis | Grain Commodities Trading: 2020-05-27 | IFCM
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Grain Commodities Technical Analysis - Grain Commodities Trading: 2020-05-27

Grain Index Technical Analysis Summary

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Strong SellSellNeutralBuyStrong Buy

Above 365

Buy Stop

Below 350

Stop Loss

Mary Wild
Senior Analytical Expert
Articles 2058
IndicatorSignal
RSI Neutral
MACD Buy
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Grain Index Chart Analysis

Grain Index Chart Analysis

Grain Index Technical Analysis

On the daily timeframe, Grain_4: D1 moved from a downtrend to an uptrend. Now it is in a triangle, which must be breached up before opening a buy position. A number of indicators of technical analysis formed signals for a further increase. We do not exclude a bullish movement if Grain_4 rises above the last upper fractal and the upper Bollinger line: 365. This level can be used as an entry point. We can set a stop loss below the Parabolic signal, the lower Bollinger line and the last 2 lower fractals: 350. 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 trend. If the price meets the stop level (350) without activating the order (365), it is recommended to delete the order: market sustains internal changes that have not been taken into account.

Fundamental Analysis of PCI - Grain Index

In this review, we propose to consider the “& Grain_4” personal composite instrument (PCI). It reflects the price dynamics of a portfolio of 4 grain exchange futures. Will Grain_4 quotes grow?

Several factors at once can contribute to the growth in grain prices. A possible softening of US-Chinese trade disputes would encourage China’s purchase of grain from the US. The rise in world oil prices causes higher fuel prices for tractors and combine-harvesters, which increases the farmers' expenses and the net cost of grain. Removing quarantine in the world major countries contributes to the restoration of world grain trade and enhances the activity of buyers. Since the Grain_4 personal composite instrument is a portfolio of 4 different instruments, technical analysis can be an important factor in predicting its dynamics.

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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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