Technical Analysis #C-RICE : 2018-06-28
|Lower supply forecast bullish for rice price
Forecast of higher US exports and lower global production are bullish for rice price. Will the rice price continue rising?
The June US Rice Outlook estimates a decrease in global rice production and ending stocks, and an increase in US export forecast for 2018/19 season. In global rice market the production was lowered 2.15 million tons to 487.4 million due to a smaller crop forecast for China, the largest rice producing country. However global rice trade in calendar year 2019 remains projected at a record high of 49.5 million tons, and US exports in 2018/19 were upgraded by 2.0 million cwt to 103.0 million cwt. Lower expected global production and higher US exports are bullish for rice price.
On the daily timeframe the RICE: D1 has been rising after hitting 13-month low two days ago.
-
The Parabolic indicator has formed a buy signal.
-
The Donchian channel indicates no trend yet: it is flat.
-
The MACD indicator gives a bullish signal: it is below the signal line and the gap is narrowing.
-
The Stochastic oscillator is in the overbought zone, this is bearish.
We expect the bullish momentum will resume after the price breaches above the upper Donchian bound at 11509. A price above that level can be used as an entry point for a pending order to buy. The stop loss can be placed below the lower Donchian bound at 10.452. After placing the pending order, the stop loss is to be moved to the next fractal low, following Parabolic signals. By doing so, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (11.509) without reaching the order, we recommend canceling the order: the market sustains internal changes which were not taken into account.
Technical Analysis Summary
|
Position |
Buy |
|
Buy stop |
Above 11.509 |
|
Stop loss |
Below 10.452 |
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.