IFC Markets - Analytics

    IFC Markets

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    Technical Analysis PCI : 2015-02-27

    Bullish grain market

    Today we would like to focus your attention to the PCI (Personal Composite Instrument) &Grain_4 on the H4 chart. It reflects the price dynamics of the portfolio of 4 popular grain commodities: corn, soybeans, wheat and oats. In general, grain is rising in price after world oil prices soared approximately 25% since mid-January. Moreover, other grains also advanced. According to International Grains Council estimates, world corn crop in 2015/2016 will drop 5%, and wheat – 2%. Soybean crop may increase, but now its price is underpinned by the strike of truck drivers in Brazil. You can import &Grain_4 PCI into NetTradeX from our website.

    PCI

    &Grain_4 broke the downtrend resistance line upwards on the H4 chart. Bollinger bands have already started to widen, but the price has not reached the upper band yet. Note the reduced volatility on the MACD chart: it is below the zero level and the signal line which can be considered a bullish signal. The RSI indicator is going up, but hasn’t reached the overbought level. We do not rule out the bullish momentum being developed after the last & Grain_4 candlestick will close above the upper Bollinger band, which is currently the level at 390. Stop loss is to be placed at the last Parabolic point, which can now act as the support line at 382.5. After pending order placing, Stop loss is to be moved every four hours near the next fractal low, following Parabolic and Bollinger bands signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets stop loss level without reaching the order, we recommend cancelling the position: market sustains internal changes which were not considered.

     

    Position Buy
    Buy stop above 390
    Stop loss below 382.5

    Dear traders. For the detailed report of the strategy based on analytical issues of technical analysis click here.


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