Recommendation for Corn:Sell
Sell Stop : Below 521
Stop Loss : Above 573
| Indicator | Value | Signal |
|---|---|---|
| RSI | Sell | |
| MACD | Sell | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Sell | |
| Bollinger Bands | Neutral |
Chart Analysis
On the daily timeframe, Corn: D1 is correcting down from the high since July 2013. Quotes approached the uptrend support line, which must be broken down before opening a position. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish move if Corn falls below its latest low: 521. This level can be used as an entry point. We can place a stop loss above the last upper fractal, upper Bollinger line and Parabolic signal: 573. After opening a pending order, we can move the stop loss following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (573) without activating the order (521), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.
Fundamental Analysis
Brazil and Argentina raised their corn harvest forecast. Will the Corn quotes lower?
Brazilian food statistics agency Conab raised its forecast for Brazilian corn by 3.2 million tons to 105.5 million tons. Rosario Grains Exchange raised its estimate for corn harvest in Argentina by 2.5 million tons to 48 million tons. Earlier the United States Department of Agriculture projected the production of corn in the United States in 2020 to be 4% higher than in 2019. Recall that on Monday, February 15, the New York Stock Exchange is closed due to the Presidents’ Day holiday in the US.