Technical analysis: Will the rice price reverse its falling?

Dmitry Lukashov IFC Markets

Recommendation for rough rice: Sell

Sell Stop: Below 13.16.

Stop Loss: Above 13.56.

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

Chart analysis

The #C-RICE technical analysis of the price chart in daily timeframe shows #C-RICE, D1 has fallen to test unsuccessfully the 200-day moving average MA(200), which is rising still. We believe the bearish momentum will continue as the price breaches below the lower bound of Donchian channel at 13.16. A pending order to sell can be placed below that level. The stop loss can be placed above 13.56. After placing the order, the stop loss is to be moved every day to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental analysis

USDA’s weekly net export sales report indicated rice export sales were on the rise. Will the rice price reverse its falling?

US Department of Agriculture weekly net export sales report a couple weeks ago indicated net sales volume was up 84% from previous week at 79,500 metric tons. Higher export sales which point to strong demand are bullish for rice price. At the same time this year the US harvest is expected to be at least 15% off from last year, which is an additional upside risk for rice price. However the current technical setup is bearish for #C-RICE.

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

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.

EUR/USD weakens below 1.1900, USD remains firm

EUR/USD has slipped back into its downtrend, drifting below the 1.1900 support as the US Dollar’s recovery keeps gathering traction. Indeed, the Greenback’s push higher gathered pace after President Trump named Kevin Warsh as Jerome Powell’s successor and US Producer Prices rose more than expected in December.

GBP/USD retreats further, threatens 1.3700

Selling pressure remains on the rise, dragging GBP/USD back towards three-day lows around 1.3720-1.3710 at the end of the week. Cable’s retracement reflects a firmer rebound in the Greenback as investors digest Trump’s announcement of the next Fed chair.

Gold remains offered just above $5,000

Gold is extending its pullback, managing to trim part of its strong losses and regain the $5,000 mark and beyond on Friday. The precious metal’s severe drop comes amid broad-based profit-taking across the commodity space, alongside a firmer US Dollar and mixed US Treasury yields.

Stellar deepens correction, slipping to 3-month low as risk-off mood persists

Stellar continues to trade in the red, slipping below $0.20 on Friday, a level not seen since mid-October. Bearish sentiment intensifies amid falling Open Interest and negative funding rates in the derivatives market. On the technical side, weakening momentum indicators support further correction in XLM.

Microsoft sell-off etches $400 billion hole in market, second highest on record

Microsoft's (MSFT) post-earnings cratering on Thursday sent other indices into pullback mode despite the narrow nature of its weakness.

Top 3 Price Prediction: Bitcoin, Ethereum, Ripple deepen sell-off as bears take control of momentum

Bitcoin, Ethereum, and Ripple continued their corrections on Friday, posting weekly losses of nearly 6%, 3%, and 5%, respectively. BTC is nearing the November lows at $80,000, while ETH slips below $2,800 amid increasing downside pressure.