Rice quotes are far ahead of the other grains
Since the start of the year the wheat has plunged by 17.8%, the corn by 7.6% while the rice has gained 5.4%. Surely, the rice is the traditional food stuff in Southeast Asia yet it usually costs three times more than wheat. Given the oppositely directed price movements the rice may become less appealing compared to grains. In 2014 the wheat, corn and rice lost 20%, 40% and 22% respectively. Thus, the rice prices were more or less in line with the grains price dynamics last year. At this moment, the wheat and corn are at the lowest in 5 years level and the retracement up is possible. Therefore, we suggest two diverse rice positions.
rice
On the daily chart the Rice:D1 is in the uptrend above the 200-day moving average. For the last days is has been forming the triangle chart pattern. The Bollinger Bands haven’t yet started to descend. The MACD Indicator gives the Sell signal while Parabolic recommends to Buy. RSI is above the level of 50 and is forming the bearish divergence. In our opinion, the momentum may be formed after surpassing the two upper fractals and Parabolic signal of 12.22 on in case of falling below the last lower fractal and the Parabolic signal of 11.38. The direction of the trade is up to the market. Two or more positions may be placed symmetrically: having opened one of the orders the second is to be deleted as the market has chosen the direction. Having opened the delayed order we shall move the stop to the next fractal maximum (short position) and fractal minimum (long position) following the Parabolic signal every 4 hours. The most risk-averse traders may switch to the 4-hour chart after the trade and to place there a stop-loss moving it in the direction of the trade. By doing this we adjust the potential profit/loss ratio in our favour.
Position Sell
Sell stop below 11,38
Stop loss above 12,22
Position Buy
Buy stop above 12,22
Stop loss below 11,38
Since the start of the year the wheat has plunged by 17.8%, the corn by 7.6% while the rice has gained 5.4%. Surely, the rice is the traditional food stuff in Southeast Asia yet it usually costs three times more than wheat. Given the oppositely directed price movements the rice may become less appealing compared to grains. In 2014 the wheat, corn and rice lost 20%, 40% and 22% respectively. Thus, the rice prices were more or less in line with the grains price dynamics last year. At this moment, the wheat and corn are at the lowest in 5 years level and the retracement up is possible. Therefore, we suggest two diverse rice positions.
rice
On the daily chart the Rice:D1 is in the uptrend above the 200-day moving average. For the last days is has been forming the triangle chart pattern. The Bollinger Bands haven’t yet started to descend. The MACD Indicator gives the Sell signal while Parabolic recommends to Buy. RSI is above the level of 50 and is forming the bearish divergence. In our opinion, the momentum may be formed after surpassing the two upper fractals and Parabolic signal of 12.22 on in case of falling below the last lower fractal and the Parabolic signal of 11.38. The direction of the trade is up to the market. Two or more positions may be placed symmetrically: having opened one of the orders the second is to be deleted as the market has chosen the direction. Having opened the delayed order we shall move the stop to the next fractal maximum (short position) and fractal minimum (long position) following the Parabolic signal every 4 hours. The most risk-averse traders may switch to the 4-hour chart after the trade and to place there a stop-loss moving it in the direction of the trade. By doing this we adjust the potential profit/loss ratio in our favour.
Position Sell
Sell stop below 11,38
Stop loss above 12,22
Position Buy
Buy stop above 12,22
Stop loss below 11,38
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