IFC Markets - Analytics

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    Technical Analysis #C-CORN : 2015-03-30

    Report on crops

    At 16:00 CET on Tuesday US Agricultural Service will release a report on crops evaluating wheat and corn reserves at state and private establishments (link). Investors are loking forward to this report because it will forecast future demand and may boost agricultural futures. Let us consider the consolidating continuous CORN futures on the H4 chart.

    CORN

    The price is in a range in prospect of the fundamental release. Doncian channel doesn't show an incline. The bullish momentum is confirmed by ParabolicSar, which has made a U-turn. Amid consolidation the oscillator signals should be carefully monitored. Despite the trend is keeping its direction, RSI-Bars has breached the support line (see the red mark on the figure above). That means that market is mixed: placing 2 opposite pending orders would be the best tactics. Let us allocate two key levels for that: 399.7 and 393.5. The upper level is confirmed by Parabolic historical signals and the Donchian channel boundary. The support at 393.5 is verified by the bullish “double bottom” pattern and Bill Williams fractals. When the long position is opened, we recommend to pay attention to the oscillator signals. If the ascending momentum is not confirmed by breaching the local overbought zone at 75%, we advise you to place a Stop loss at the break-even point.
    When any pending order triggers, the opposite one should be canceled because market is choosing a direction. Stop loss is to be moved every four hours, following Parabolic signals. Thus, we are changing the probable profit/loss ratio for our benefit.

     

    Position Sell
    Sell stop below 393.5
    Stop loss above 399.7

     

    Position Buy
    Buy stop above 399.7
    Stop loss below 393.5

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