Technical analysis: Will the oats prices continue rising?

Dmitry Lukashov IFC Markets

Recommendation for Oats: Strong Buy

Buy Stop: Above 295.8
Stop Loss: Below 275.6

Indicator	Value	Signal
RSI		Neutral
MACD		Buy
Donchian Channel		Neutral
MA(200)		Buy
Fractals		Buy
Parabolic SAR		Buy

Chart Analysis

On the daily timeframe the #C-OATS: D1 is rising above the 200-day moving average MA(200) which is rising itself. We believe the bullish momentum will continue after the price breaches above the upper Donchian boundary at 295.8. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 275.6. After placing the pending order the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop-loss level (275.6) without reaching the order (295.8) we recommend cancelling the order: the market sustains internal changes which were not taken into account.

Fundamental Analysis

Shifting consumer preference towards consuming healthy food benefits oats. Will the oats prices continue rising?

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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