- Analytics
- Technical Analysis
Grain Commodities Technical Analysis - Grain Commodities Trading: 2021-06-02
Grain Index Technical Analysis Summary
Above 576
Buy Stop
Below 529
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Sell |
| MA(200) | Neutral |
| Fractals | Neutral |
| Parabolic SAR | Buy |
| Bollinger Bands | Neutral |
Grain Index Chart Analysis
Grain Index Technical Analysis
On the daily timeframe, Grain_4: D1 failed to break down the support area and returned to the growing trend. A number of technical analysis indicators have formed signals for further growth. We do not exclude a bullish movement if Grain_4 rises above its last high: 576. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal and the last lower fractal: 529. After opening a pending order, we can move the stop loss following the Bollinger and Parabolic signals to the next fractal low. Thus, we are changing the potential profit / loss ratio in our favor. After the transaction, the most cautious traders can switch to the four-hour chart and set a stop-loss, moving it in the direction of the trend. If the price overcomes the stop loss (529) without activating the order (576), it is recommended to delete the order: there are internal changes in the market that were not 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 popular grain commodities. Will the Grain_4 quotes grow?
Several factors can contribute to price increase. Spring wheat and corn crops were affected by frost damage in northern Iowa, as well as in Wisconsin and Michigan. This has been reported by farmers and local authorities, but there is no confirmation from the US Department of Agriculture (USDA) yet. An additional negative factor for the future grain harvest in the United States may become a drought, which is predicted to begin next week. Consulting agencies StoneX and AgRural lowered their forecasts for the corn crop in Brazil to 89.7 million tons and 90.9 million tons. At the same time, the current USDA forecast is much higher and amounts to 102 million tons. It can be revised downward. Soybeans are becoming more expensive amid an increase in its exports from the United States since the beginning of 2021 by almost 60% compared to the same period in 2020. The current US soybean exports since the beginning of the year have already reached 56.4 million tons.
Explore our
Trading Conditions
- Spreads from 0.0 pip
- 30,000+ Trading Instruments
- Stop Out Level - Only 10%
Ready to Trade?
Open Account 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.
